(Source: Associated Press/AP Online)
SAN FRANCISCO - Gap Inc. says cost-cutting and tight control on inventory boosted its fiscal second-quarter profit by half, even as sales fell.
The San Francisco-based apparel retailer says profit for the three months ended Aug. 2 rose 51 percent to $229 million, or 32 cents per share, from $152 million or 19 cents per share.
Revenue fell 5 percent to $3.5 billion from $3.69 billion last year.
Analysts polled by Thomson Reuters predicted a profit of 30 cents per share on revenue of $3.52 billion. Gap had expected earnings of 30 cents to 31 cents per share.
Sales in stores open at least one year, a key retail metric known as same-store sales, fell 10 percent.
Inventory per square foot fell 17 percent year-over-year.
