Market Report -- Story Stocks (GPS)

November 20, 2009 9:53 AM ET

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Gap

Gap (GPS 21.68, -0.18) reported in-line third quarter earnings and improved margins, but strong sales results at the company's Old Navy stores were offset by continued declines at Gap and Banana Republic.

Gap reported third quarter earnings of $0.44 per share, in-line with the First Call consensus of $0.44.

Revenues increased 1% year-over-year to $3.59 billion; the consensus expected $3.58 billion. Same-store sales were flat. Same-store sales at Old Navy increased 10%, while Gap dropped 7% and Banana Republic fell 6%.

Gap said its third quarter gross margin increased 380 basis points to 42.5%; operating margins increased to 13.9% from 11.1% last year.

In a separate release, Gap announced that its board of directors authorized an additional $500 million share repurchase program.

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