Gap 2Q Profit Up 51%
San Francisco Gap Inc. reported a 51% jump in quarterly net income on Thursday, beating Wall Street estimates, as cost-cutting, lower inventories and other moves that boosted profit offset declining sales.
Gap said that profit for the three months ended Aug. 2 rose 51% to $229 million from $152 million a year earlier. Revenue fell 5% to $3.5 billion from $3.69 billion last year, while analysts expected revenue of $3.52 billion.
Same-store sales for the quarter decreased 10%, compared with a decrease of 5% in the second quarter of the prior year.
Glenn Murphy, president and CEO told investors during a conference call late Thursday that the company is working on improving the products it offers and the experience customers have in the stores, as well as shoppers’ perception of its brands, to help drive traffic.
The company’s online sales for the second quarter increased 11% to $191 million, compared with $172 million for the second quarter of last year.
Barnes & Noble 2Q sales down 1.6%
NEW YORK Barnes & Noble reported that sales for the second quarter decreased 1.6% to $1.2 billion. Barnes & Noble store sales decreased 1.6% to $1.1 billion, with comparable-store sales decreasing 4.7% for the quarter. Barnes & Noble.com sales were $99.8 million for the quarter, a 3.6% comparable sales increase.
Second quarter net earnings were $15.4 million or 27 cents per share.
For the third quarter, the company expects comparable-store sales at Barnes & Noble stores to decline in the low single digits. Barnes & Noble Inc.’s third quarter loss per share is expected to be in a range of 10 cents to 15 cents.
Based on first-half 2008 sales performance and current trends, the company is reducing its full-year comparable store sales guidance from slightly negative to a decrease in the low single digits. Although the company is reducing full-year sales guidance, the company is reiterating full-year earnings per share guidance to be in a range of $1.70 to $1.90.
Wyatt named president of Old Navy
SAN FRANCISCO Gap Inc. announced that Tom Wyatt has been named president of its Old Navy division, effective immediately. Wyatt, a 30-year retail veteran, has been serving as interim president of the retailer since February.
In his first actions as brand president, Wyatt made several changes to his senior management team, effective immediately, including announcing the departure of merchandising evp Sheryl Clark.
Wyatt joined Gap Inc. in early 2006, and previously served as president of the company’s Outlet division until he joined Old Navy this year. His 30 years of retail experience include: serving as president and ceo of a mid-size athletic apparel company; president of Warnaco Intimate Apparel; and a senior executive within the Saks family of companies.