Nov 18 – Gap Inc. reported that earnings per share for the third quarter, which ended October 30, 2010, increased 9 percent to $0.48 per share on a diluted basis, compared with $0.44 last year. Net earnings decreased 1 percent to $303 million compared with $307 million for the third quarter last year.

Gap in New York

“We improved the top line and grew our earnings per share this quarter while keeping a clear focus on North America and making strategic global investments, including new market entries in China and Italy,” said Glenn Murphy, chairman and chief executive officer.

In the third quarter of fiscal year 2010, Gap Inc. expanded its online reach by launching sites in Canada and the United Kingdom and increasing international shipping to more than 80 countries. The company recently opened Gap stores in Shanghai and Beijing, with a simultaneous online launch in China. Gap Inc. operates about 3,100 stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, and China. The company also plans to open Gap and Banana Republic stores in Italy.

The company’s franchise sales for both Gap and Banana Republic brands for the third quarter of fiscal year 2010 increased 45 percent compared with last year. At the end of the third quarter of fiscal year 2010, the company had a total of 165 franchise stores, including 136 Gap stores and 29 Banana Republic stores, in 22 countries.

The gross margin of 41.2 percent and operating margin of 13.8 percent both represent the company’s second best third quarter performance in a decade.