Gap Q2 profit climbs 29%; raises guidance

San Francisco -- Gap Inc. reported Thursday that net income for the quarter ended July 28 surged 29% to $243 million, prompting the retailer to raise its guidance for full-year 2012.

Sales increased 6% to $3.58 billion, compared with $3.39 billion for the second quarter last year. Same-store sales rose 4%.

“Our continued focus on product and store execution are helping to drive positive momentum and we’re committed to sustaining solid performance for the remainder of the year,”said Glenn Murphy, chairman and CEO.

By banner, second-quarter same-store sales rose 7% at Gap North America stores, compared with a negative 3% last year; for Banana

Republic North America, same-store sales also rose 7% after recording a 2% decline last year; and Old Navy posted a 3% same-store sales rise this quarter against flat comps last year.

During the quarter, Gap opened 11 Athleta stores, doubling its fleet to 22 stores across North America. The company said it continues to expect net openings of about 15 company-operated stores and about 50 to 75 franchise stores during fiscal year 2012. Square footage for company-operated stores is expected to decrease by about 1% by the end of fiscal year 2012 compared with the end of fiscal year 2011.

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