|Gap's 2Q Profits Drop 19 Pct|
Gap Inc. is reporting a 19 percent drop in second-quarter profit as it was forced to slash prices to get shoppers to buy its clothes.
The nation's largest clothing retailer, based in San Francisco, 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. Revenue rose 2 percent to $3.38 billion.
Analysts had expected 33 cents per share on revenue of $3.39 billion in the quarter.
The chain's revenue at stores opened at least a year fell 2 percent, dragged down by declines at Gap and Banana Republic. At low-price Old Navy, business was unchanged.
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Published on our website on August 19, 2011