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Last Updated: Thursday, 24 May 2007, 23:07 GMT 00:07 UK
Costs of closing business hit Gap
Gap bag
Unexciting designs have hurt Gap sales as customers go elsewhere
Gap said profit was lower for the past three months of the year, hurt by the costs of closing its Forth & Towne arm.

The clothing retailer said in February it would not pursue a roll-out of the concept, instead focusing on turning round its core Gap and Old Navy brands.

Net income was $178m (89.6m), in contrast with $242m reported in the same period a year ago.

Gap has not seen a rise in quarterly same-store sales since 2004 and is currently looking for a new boss.

The retailer, which also owns the Banana Republic brand, is seeking a new chief executive after Paul Pressler stepped down in January by mutual agreement.

Gap's non-executive director Robert Fisher has taken over as temporary head of Gap.

He said finding a leader with suitable experience to help the retailer, which has 3,000 stores worldwide, regain its iconic position in casual fashion, would take some time.

Forth & Towne was set up 18 months ago to target fashion-aware baby boomers. The last stores, open in 10 US markets, will close in June.


SEE ALSO
Gap sees sales continue to slide
10 May 07 |  Business
Gap boss departs after poor sales
23 Jan 07 |  Business
Falling sales hit profits at Gap
18 Aug 06 |  Business
Gap recovery continues
21 Aug 03 |  Business
Gap hit by 'sweatshop' protests
21 Nov 02 |  Business

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