Retail in Asia

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Gap 1Q12 net profit flat, net sales in Asia grow 19pc

US’s biggest apparel retailer Gap Inc on Thursday said net income for the first quarter ended on 28 April 2012 was USD233 million, flat compared with the first quarter last year. Net sales in Asia increased 19 percent to USD273m from USD230m last year. Total net sales increased 6 percent to USD3.5 billion. Franchise net sales increased 30 percent compared with last year, and the company entered three new markets during the quarter.

"During the quarter, we improved sales, grew earnings per share, and continued investing in the business to drive performance," said Glenn Murphy, chairman and CEO of Gap Inc. "We’re pleased with the progress we’re making against our 2012 priorities in both our domestic business and global growth initiatives."

The company continued to expand its store base in China, opening 7 new stores during the first quarter.

Given first quarter performance, the company has raised its estimate for fiscal year 2012 diluted earnings per share to be in the range of USD1.78 to USD1.83, representing a 14 percent to 17 percent increase over fiscal year 2011 diluted earnings per share of USD1.56.