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Gap Inc. gives 2Q warning
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August 2, 2000: 6:29 p.m. ET
Retailer says Q2 profits would miss estimates with drop in summer sales
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NEW YORK (CNNfn) - Clothing retailer Gap Inc. warned Wednesday its second-quarter profit would miss the Wall Street consensus due to weaker-than-expected results in July. The company said earnings per share will fall two-to-three cents below the current consensus estimate of 23 cents.
GAP (GPA: Research, Estimates), which operates stores under such brand names as The Gap, Baby Gap, Gap Kids, Banana Republic, and Old Navy, said comparable store sales for July 2000 decreased 1 percent compared to a 2 percent increase in July 1999. The number of Gap Inc. stores increased to 3,284 as of July 29, 2000, compared to 2,661, a year ago. Gap is expected to report quarterly earnings on Aug. 10.
"In terms of Gap domestic, July has been a strong month, recording the first double-digit comparable growth since March 1999," said company spokesman Alan Marks. "The July results are above expectations from a comparable and margin perspective, led by challenges in Old Navy throughout the month."
For the July comparable store sales, Marks said Old Navy had a double-digit decline in sales.
 The San Francisco-based company reported sales of $851 million for the four weeks ended July 29, 2000, an increase of 22 percent over sales of $696 million for the comparable period ended July 31, 1999.
Sales of $5.68 billion for the 26 weeks ended July 29, 2000, represent an increase of 20 percent over sales of $4.73 billion for the same period in 1999. The company's year-to-date comparable store sales decreased 2 percent compared to a 10 percent increase a year ago.
Wall Street analysts currently expect Gap to earn 43 cents per share in the third quarter and 57 cents per share in the fourth quarter, according to earnings research firm First Call/ Thompson Financial.
Shares of The Gap fell 4-7/16 to 32-9/16 in after-hours trading. 
-- from staff and wire reports
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The Gap
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