Prompted by cost reduction and improving sales, three of the biggest US clothing retailers — Gap Inc., Nordstrom Inc, and Limited Brands Inc. — announced better than expected quarterly profits on Thursday.
According to Reuters Research, San Francisco-based Gap, which owns the Gap, Old Navy and Banana Republic chains and is the largest specialty apparel retailer in the US, beat earnings estimates by a penny and closed at $20.15 per share on Thursday. The company reported it earned $209 million in the second quarter, a steep increase from the $57 million it earned in the first one.
Department store Nordstrom, which is based in Seattle, Washington, announced an 82% increase in its quarterly profits. They rose from $36.3 million in the previous quarter to $65.9 million in the second.
Ohio-headquartered Limited, which owns a 4,000-store empire comprising namesake womenswear stores, Victoria’s Secret lingerie shops and the Express casualwear chain, said its earnings for the second quarter rose to 19 cents per share. Analysts expected Limited stocks to close no higher than 16 cents per share. However, the Limited did add that its August clothing sales have been lower than expected.
(From Reuters)