Gap reports yet another round of disappointing profits for Q2
American apparel retailer Gap reported a fall in quarterly profit for the second consecutive quarter yesterday.
The company said that it had been hit by a stronger dollar, shipment delays and weak sales.
The company said net income fell by more than a third to $219m (£140m) or 52 cents per share, in the second quarter, from $332m, or 75 cents per share, a year earlier.
Excluding restructuring and lease buyout costs, the company earned 64 cents per share.
Gap executives said that they did not expect sales to improve before the holiday season, but vowed that the company would focus on closing underperforming stores and improving delivery systems to up profits in the next quarter.
Analysts have said that Gap’s problems in recent years have stemmed largely from its designs, which customers have rejected in favour of rival brands like American Eagle Outfitters, Urban Outfitters, H&M, Forever 21 and Zara.