Old Navy Sales Add New Muscle as Gap’s Profit Jumps by 49%

Gap Inc. said its profit climbed a better-than-expected 49% in the fiscal first quarter as shoppers scooped up drawstring pants and other new fashions at its Old Navy stores.

Catalog retailer Lands’ End Inc. and department store operator Dillard’s Inc. reported earnings gains that, while much more modest, exceeded analyst forecasts.

But Nordstrom Inc., which operates high-priced department stores, said fiscal first-quarter profit declined slightly.

At a Glance

* San Francisco-based Gap, which also operates Gap, Banana Republic and GapKids stores, said its net income rose to $202.4 million, or 34 cents a share, beating by 2 cents the average estimate of analysts polled by First Call Corp. Revenue jumped 32% to $2.28 billion and sales at stores open at least a year rose 11%.

In April, higher sales at Old Navy more than made up for a surprise drop at Gap stores.

* Lands’ End said its profit from operations rose 10% to $5.7 million, or 18 cents a share, 2 cents higher than the average estimate of five analysts polled by First Call.

The company, based in Dodgeville, Wis., said much of the sales growth came from the liquidation of its Willis & Geiger outdoor-clothing catalog.

* Dillard’s said its net income rose 6.1% to $66.9 million, or 63 cents a share, in the latest quarter, well above the 58 cents analysts forecast. Revenue was up 27% to $2.19 billion, and same-store sales rose 4% at the Little Rock, Ark.-based retailer.

* Nordstrom said its net income fell to $31.5 million, or 22 cents a share, from $32.3 million, or 21 cents, a year ago, as revenue was flat at $1.04 billion. The most recent quarter includes a one-time charge of 2 cents. Without the charge, the results matched analyst expectations.

Nordstrom recently wrapped up a program aimed at reducing costs by clearing excess inventory.