Gap (GPS) Still Drowning

By Douglas A. McIntyre Updated Apr 27, 9:53PM EDT · Published Aug 21, 3:43PM EDT

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Angrybear_3 Gap’s (GPS) earnings got a bit better, but the company is still coming apart at the seams.

In the latest quarter, Gap revenue fell from $3.69 billion to $3.5 billion. Comparable store sales were off 10%. The company’s online sales for the second quarter increased 11% to $191 million, compared with $172 million for the second quarter of last year.

Gap’s Old Navy brand is badly broken. Comparable store sales for that division were down 16%. Revenue for Old Navy fell from $1.5 billion to $1.3 billion. The operation still has over 1,000 stores and its is difficult to see how Gap can ever make money on them.

Net earnings at Gap made a modest comeback. They rose to $229 million in the quarter ending August 2 compared to $158 million last year. Based on sales by brand, that profit probably came from international, online, Gap North America, and Banana Republic North America.

That left Old Navy in the dust.

Douglas A. McIntyre

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.