NEW YORK — PROFIT PLUNGE: Gap earned $189 million, or 35 cents per share, in the quarter ended July 30. That compares with $234 million, or 36 cents per share, a year ago.
THE CONTEXT: Deep discounting and escalating costs to produce its clothes hurt Gap’s profits.
OUTLOOK: The company reaffirmed its full-year profit guidance of $1.40 to $1.50 per share, which was cut back in May.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.