Gaps cost control inventory strategy seems to have paid off big for the company. Thursday the company reported a 51 percent surge in profits, as their cost cut measure helped offset the stores declining sales. The company has also reduced its capital spending forecast and plans to reduce the number of new store openings.

Gap's CEO Glenn Murphy reported Tuesday that he plans to close some the retailers stores as well as downsize others in or to better capitalize on the 40 million square feet that Gap currently leases. Murphy stated that he plans to dramatically cut its stores square footage in order to bolster overall profits.

Gap reported Thursday that its first quarter net profit rose by 40 percent on lower inventories and fewer markdowns. Despite slower sales the company has been able to reduce its costs, which has allowed it to produce significantly higher earnings. For the first quarter Gap reported earnings of 34 cents a share compared to 22 cents a share for its first quarter earnings a year prior.

Gap Inc. posted third quarter revenue up 26% due to lower marketing costs on Wednesday. Net income for the company rose to $238 million or 30 cents per share compared to 23 cents per share last year. CEO, Glen Murphy, stated that the company is preparing for a rough holiday season with same store sales down 5% for the quarter. He stated that the tough economical environment would lower sells this... More