Home / Knowledge / News / Apparel/Garments / Second-quarter profit down at Gap Inc
Second-quarter profit down at Gap Inc
Aug '11
Gap Inc reported that net sales for the second quarter of fiscal year 2011, which ended July 30, 2011, increased 2 percent to $3.39 billion compared with $3.32 billion for the second quarter last year. Net income decreased 19 percent to $189 million compared with $234 million for the second quarter last year. Second quarter diluted earnings per share was $0.35 compared with $0.36 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 chief executive officer 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.”

In the second quarter, the company continued to focus on its goals for fiscal year 2011, including growing top line sales, maintaining strong expense discipline, investing in long-term growth, and returning cash to shareholders.

Second Quarter Financial and Business Highlights
• Net sales increased 2 percent to $3.39 billion compared with last year.
• Net sales for the Gap Inc. Direct division increased 20 percent to $309 million compared with last year.
• Operating expenses were flat to last year and decreased 50 basis points as a percentage of net sales.
• Returned $880 million to shareholders, with $820 million in share repurchases and $60 million in dividends, underscoring the company's continued commitment to return cash to shareholders.
• Opened 300th redesigned Old Navy store, focused on improving customer shopping experiences and part of the brand's ongoing strategy to improve top line sales performance.
• Announced plans to expand Athleta stores to the New York, Los Angeles, Washington D.C., Minneapolis, and Philadelphia markets. Athleta last week opened its doors in Manhattan's Upper East and Upper West Side neighborhoods.
• Opened first Gap flagship store in Rome, introduced its outlet concept in Italy, and further expanded its outlet business for both Gap and Banana Republic in Japan. The company last week opened its third Gap store in Shanghai, bringing the total to six stores in China.
• Opened new franchise stores in Egypt and Ukraine and announced new agreements to introduce stores to Serbia and Morocco.
• Announced product and marketing collaborations including the GapKids and babyGap collection created by American fashion icon Diane von Furstenberg for Spring 2012 and Banana Republic's “Mad Men” series-inspired collection.

Second Quarter Comparable Sales Results
The company's second quarter comparable sales, which include associated comparable online sales, were down 2 percent compared with a 1 percent 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.

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search