US: Gap Q2 profit soars as comps rise
- Q2 net profit up 29% to US$243m
- Sales up 6% to $3.58bn
- Comparable store sales up 4%
Fashion retail giant Gap Inc has posted a 29% surge in second quarter net profit, driven by across-the-board comparable store sales increases for its main brands.
In North America, Gap, Banana Republic and Old Navy recorded comps rises for the second consecutive quarter in the three months to 28 July, while Gap Direct’s revenues were up 24% to $384m.
Sales outside North America rose 7%, with the company highlighting the opening of the first Old Navy store outside North America – in Tokyo – and the continued expansion of the Gap store base in China.
Franchise sales were up 25% as the company opened its 250th franchise store, and it also opened 11 new Athleta stores in North America, doubling its roster.
“Customers responded well to our product offerings across our brands, driving a healthy increase in sales and earnings per share during the quarter,” said Glenn Murphy, Gap chairman and CEO.
“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.”
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