Gap’s 2Q earnings down 19 percent because of markdowns, rising costs

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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.

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