Retailer Gap steadies after profits rise

Clothing retailer Gap has reported a 19 per cent jump in second-quarter profits as the chain's aggressive cost-cutting offset…

Clothing retailer Gap has reported a 19 per cent jump in second-quarter profits as the chain's aggressive cost-cutting offset a further slide in store sales.

The US-based firm said profits for the three months to August 4th rose to $152 million from $128 million a year earlier.

Revenues for the period fell 1 per cent to $3.69 billion, while like-for-like store sales sank 5 per cent. However, the retailer added that online sales had risen 26 per cent.