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Gap Inc. income down in a challenging quarter

SAN FRANCISCO — Gap Inc. reported that net sales for the second quarter of fiscal year 2011, which ended July 30, increased 2% to $3.39 billion compared with $3.32 billion for the second quarter last year. The company’s second quarter comparable sales, which include associated comparable online sales, were down 2% compared with a 1% increase in the second quarter last year. For the second quarter of fiscal year 2011, online sales positively impacted comparable sales for Gap Inc. by 2 percentage points.

Net income decreased 19% to $189 million compared with $234 million for the second quarter last year. Second quarter diluted earnings per share was 35 cents compared with 36 cents last year.

“Despite a difficult quarter, we still delivered a net sales improvement and I continue to believe we have far greater opportunities than challenges ahead of us,” said Glenn Murphy, chairman and CEO of Gap Inc. “Every brand, division, and geography is focused on what matters most – delivering consistent, great product and more effective marketing in order to drive higher levels of performance.”

During the second quarter of fiscal year 2011, the company opened 31 store locations and closed 28 store locations.

The company ended the second quarter of fiscal year 2011 with 3,248 store locations in 34 countries, including 195 franchise stores. 

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