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Thursday, November 19, 2009

Gap Profit, Sales In-Line with Expectations

By Kathryn Glass

FOXBusiness

International retail chain Gap, Inc. (GPS) saw third-quarter profit and sales rise, reporting earnings and revenue that was in-line with analyst expectations. The retailer also announced its plans to repurchase shares in $500 million buyback program.

In the third quarter, profit rose 25% to $307 million or 44 cents per share compared to earnings of $246 million or 35 cents a share one year ago.

Net sales rose slightly to $3.59 billion, compared to sales of $3.56 billion during the third quarter of 2008. The retailer also announced its plans to repurchase shares in $500 million buyback program.

Analysts polled by Thomson Reuters had forecast earnings of 44 cents a share on revenue of $3.58 billion.
"We're pleased with our third quarter results, particularly our ability to deliver earnings 25 percent above last year and our highest third-quarter operating margin in a decade," said Glenn Murphy, chairman and chief executive officer. "Looking ahead to the holiday season, we're focused on gaining market share as we invest in marketing and present a strong value proposition to customers across our brands."

Shares of Gap, Inc. fell 44 cents or 1.97% in Thursday’s session to close at $21.86 a share, before falling another 26 cents or 1.19% in after-hours trading.

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