San Francisco Gap Inc. posted higher quarterly net profit on Thursday, topping Wall Street expectations, helped by lower inventory and cost cutting that boosted margins and offset a decline in sales.
Net income in its third quarter ended Nov. 1 rose to $246 million from $238 million, or 30? per share, a year earlier.
Sales fell nearly 8% to $3.56 billion from $3.85 billion.
"As sales fall we make an effort to ensure that store-related expenses ... stay in line as a percent of sales," said CFO Sabrina Simmons.