Cost cuts help lift Gap's profits

Clothing retailer Gap has reported an increase in quarterly net profit, even as its sales trends prove disappointing at its stores.

The retailer, which has more than 3,100 stores worldwide, also owns the Old Navy and Banana Republic chains.

Profit rose to $229m from $152m a year ago, but total sales fell 5% to $3.5bn from $3.69bn in the quarter.

Gap has been cutting costs, reducing inventory and slimming down its operations to boost profit margins.

Analysts expect shoppers to cut back on clothes as fuel and food bills bite.

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