Cheap clothes are in. Look no further than Gap for confirmation.
Gap also said Thursday that its board has authorized a new $750 million share repurchase program, bringing the total share repurchases authorization in fiscal 2010 to $1.75 billion.
Gap's net income for the quarter that ended July 31 was $234 million, or 36 cents per share. That beat analyst estimates and compares with $228 million, or 33 cents per share, a year earlier.
Revenue rose to $3.32 billion from $3.24 billion.
In addition to Old Navy and Gap stores, the company operates Banana Republic and several websites.