Gap Inc. Reports Second Quarter Earnings Per Share of $0.36

Gap Inc. GPS reported earnings per share for the second quarter, which ended July 31, 2010, increased 9 percent to $0.36 per share on a diluted basis, compared with $0.33 per share on a diluted basis last year. Net earnings grew 3 percent to $234 million compared with $228 million for the second quarter last year. Second Quarter Financial Highlights -- Diluted earnings per share increased 9 percent to $0.36 from $0.33 last year. -- Net sales increased 2 percent to $3.32 billion compared with $3.25 billion last year. -- Gross profit grew 2 percent to $1.31 billion compared with $1.29 billion last year. -- Operating margin increased 40 basis points to 12.0 percent compared with 11.6 percent last year. This is the highest second quarter operating margin in a decade. -- About 38 million shares were repurchased for $799 million during the quarter, and a new $750 million share authorization underscores the company's commitment to returning excess cash to shareholders.