Gap's 2Q profits drop 19 percent

AP News
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Posted: Aug 18, 2011 5:13 PM
Gap's 2Q profits drop 19 percent

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.