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Gap’s 1Q profits rise 43 per cent

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Gap Inc. is reporting a 43 per cent increase in first-quarter earnings as the clothing chain’s turnaround continues.

The San Francisco-based clothing retailer, which operates the Gap, Old Navy and Banana Republic clothing chains, says it earned $US333 million ($A345.40 million), or 71 US cents per share, for the three-month period ended May 4.

That compares with $US233 million, or 47 US cents per share, in the year-ago period.

Revenue rose 6.9 per cent to $US3.73 billion.

Analysts had expected earnings of 69 US cents per share on revenue of $US3.73 billion.

The company reiterated its full-year profit outlook.

Gap’s performance shows how the company’s efforts to attract customers with brightly coloured fashions, new designer collaborations and lively marketing are helping to boost sales.