Gap Q2 Net Nearly In Line On 3% Sales Growth; Comps Flat

Gap Inc. (NYSE: GPS) beat second-quarter adjusted earnings expectations by a penny a share on flat total same-store sales and a 3 percent increase in sales.The company essentially reiterated its net 2014 outlook, although it added $0.05 a share for a gain from the sale of a building.Second-quarter same-store sales for Gap's Old Navy brand grew four percent while sales increased 5 percent to $1.62 billion.Gap brand comparable sales fell 5 percent while total sales were essentially flat at $1.47 billion. Banana Republic's comps were flat while sales increased slightly to $704 million, and total online sales grew 11 percent to $515 million.The total second-quarter operating margin widened to 14.5 percent from 13.5 percent a year earlier, although the company forecast the measure for all of 2014 will be flat.Second-quarter net income grew 9.6 percent to $332 million, or $0.75 a share, from $303 million, or $0.64 a share a year earlier. Sales of $3.98 billion compared with $3.87 in 2013.Excluding a gain on the sale of a building, earnings were $0.70 a share.Wall Street expected $0.69 a share on revenue of $3.96 billion.Gap traded after hours recently at $43.69 a share, up 1 percent