Banana Republic North America

SAN FRANCISCO — The rising cost of goods and a challenging economic environment took its toll on Gap Inc.'s first-quarter sales and earnings. Gap Inc. reported that net income for the first quarter decreased 23% to $233 million compared with $302 million for the first quarter last year. First quarter diluted earnings per share was 40 cents. The company reported that net sales decreased 1% to $3.30 billion. Comparable sales, which includes associated comparable online sales, decreased 3%. The 3% comparable-store sales decline included a 3% decrease at Gap North America, a 1% decrease at Banana Republic North America,

Gap (NYSE:GPS) gained more than 6% after posting stronger-than-expected third-quarter revenue, driven in part by October sales and international demand. The San Francisco-based retailer reported third-quarter revenue of $3.65 billion, up 2% from $3.59 billion a year ago, beating the Street’s view of $3.56 billion. Comparable store sales for the three-month period ended Oct. 31 were flat. Gap said international demand, up 3% in comparable store sales from a 6% decline last year, led the identical store sales, with Gap North America up 1% from a 7% drop last year

Comps for Gap North America declined 1% compared to a decline of 7% in the prior year. Comps for Banana Republic North America increased 6% compared to a decline of 8% in the prior year. Old Navy North America reported negative 2% comps as compared to a positive 4% in the prior year. Comps for the international markets increased 5% as compared to a decline of 12% in the prior year.

Comps for Gap North America declined 6% compared to a decline of 9% in the prior year. Comps for Banana Republic North America increased 2% compared to a decline of 7% in the prior year. Old Navy North America reported positive 6% comps as compared to a negative 8% in the prior year. Comps for the international markets increased 3% as compared to a decline of 4% in the prior year.