GAP steadies after profits rise

Clothing retailer Gap has reported a 19% 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 4 rose to $152m (€112m) from $128m (€94.4m) a year earlier.

Revenues for the period fell 1%, while like-for-like store sales sank 5%. However, it added that online sales had risen 26%.

Glenn Murphy, who became chairman and chief executive two months ago, said there had been “solid progress” towards stabilising the business.