Retail giant the Gap Inc has increased its second-quarter profits despite total sales falling by nearly five percent.
The owner of the Gap, which also owns the Old Navy and Banana Republic chains, reported net profits of US$229 million, or 32 cents per share – a penny more than anticipated and up from last year’s US$152 million, or 19 cents per share.
While consumer spending has reduced in the face of rising fuel and food costs, Gap has been reducing their own costs by streamlining the inventory and reducing running costs.
“While we continue to pursue our 2008 financial strategy, we are very focused on bringing more customers into our stores,” said Chief Executive Glenn Murphy.
“External conditions aside, we continue to deliver improved earnings with healthy margins and I am pleased with our second quarter results.”