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Gap profits drop by 53%.

Clothing giant Gap has posted a 53% drop in second quarter profits, hit by declining sales, big price cuts and higher advertising costs.

The company said that for the three months to July 29, its net profit fell to pounds 68m from pounds 144.6m for the same period last year.

It added that its August performance had also been poor so far, and it cut its full-year profit target.

The company's shares have dropped 20% in value over the last year as it continues to struggle.

Gap's overall quarterly sales were flat at pounds 1.97bn, but those at stores open at least a year fell 5%.
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Publication:The Journal (Newcastle, England)
Date:Aug 19, 2006
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