Gap Sales Climb, But Earnings Drop

Gap Inc.’s first-quarter earnings were 21 percent lower than last year’s, a result of lower margins and disappointing sales, the company said Thursday.

For the period ending April 29, the Gap posted earnings of $50.1 million, or 35 cents per share. That’s down from $63.5 million, or 44 cents per share, in the comparable 1994 quarter.

Sales were $848 million, compared with $751 million in the same period a year ago.

Chairman Donald G. Fisher said the retail climate is soft.