OTHER NEWS - Nov. 13, 1992

Gap’s Net Falls 12% for Quarter: Reduced margins and higher advertising expenses lowered Gap Inc.’s third-quarter earnings by 12% despite an 18% increase in sales, the clothing retailer said Thursday. Net income stood at $62 million in the quarter ended Oct. 31, or 43 cents per share, compared to $70.8 million, or 50 cents per share, during the third quarter last year. Revenue rose to $827 million from $702 million during the same period last year. The company spent more in advertising during the quarter to move new merchandise that did not sell as quickly as expected, Chairman and Chief Executive Donald G. Fisher said. Gap also reduced prices on denim and other basic items to protect its market share, Fisher said. Net income for the first nine months of the year declined 1% to $145 million, or $1.01 per share, from $145.9 million, or $1.03 per share, a year before. Year-to-date sales increased 18% to $2.03 billion from $1.715 billion last year. Gap Inc. operated 1,295 Gap, Banana Republic and GapKids stores at the end of the quarter, an increase of 94 stores over last year.