Gap Hits First-Quarter Estimates

Apparel retailer Gap (GPS Quote - Cramer on GPS - Stock Picks) Thursday reported first-quarter earnings in line with Wall Street's expectations.

The company earned 13 cents a share in the quarter, down 52% from 27 cents in the year-ago period. This compares with the Thomson Financial/First Call analyst consensus estimate of 12 cents a share. Gap reported a 16% gain in sales to $3.2 billion, but a 7% decrease in same-store sales, which measure activity in shops open at least a year.

The company, which has fallen from favor among shoppers and investors in recent years as its fashion became stale, offered little in the way of financial guidance. Looking forward, the company only reiterated what it said when it released April sales recently: That same-store sales will continue to decline in the second quarter.

"We're making progress, but business is still challenging," said Millard Drexler, Gap's president and chief executive, in a statement. "We are focused on offering customers the newness they expect when they shop our stores."

Shares in the San Francisco-based company gained 75 cents Thursday to close at $34.90.