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Last Updated: Thursday, 21 August, 2003, 21:04 GMT 22:04 UK
Gap recovery continues
Gap store
The turnaround in the fortunes of US clothing group Gap has continued, according to its latest set of results.

The firm - famed for selling classic clothes such as jeans, t-shirts and khaki trousers - said strong sales at its Gap and Old Navy chains had helped it to more than triple earnings, compared with the same period last year.

Earnings for the May to July period came in at $209m, or 22 cents per share, up from $57m last year. The result was at the top end of expectations.

Gap has been refocusing its product range on its classic lines after an attempt to sell more trendy designs led to falling sales and profits.

It has also been using advertising and pricing to distinguish between its three brands - Gap, Banana Republic and Old Navy.

The firm said better products and stock control had enabled it to increase profits margins compared with last year.

Rising sales

"We're very pleased with our momentum and the increased customer acceptance of our merchandise and marketing," said Gap's chief executive Paul Pressler.

Global sales at Gap rose 13% to $3.7bn in the quarter, up from $3.3bn in the same period last year.

Sales at stores open at least a year - a key underlying sales measure - were up 10% on a year earlier, whereas in 2002 they had shown a fall of 7%.

Same-store sales at Gap's US stores were up 9%, and they were 13% higher at Gap International.

Banana Republic sales were up 5% while Old Navy saw same-store sales climb 11%.

Ahead of the release of the results, shares in Gap had closed up 22 cents, or 1.1%, at $19.65 during regular trade.




SEE ALSO:
US retail sales stage revival
13 Aug 03  |  Business
Shoppers boost US economy
12 Aug 03  |  Business
Gap hit by 'sweatshop' protests
21 Nov 02  |  Business


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