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NEW YORK (TheStreet) -- Shares of Gap (GPS) - Get Free Report are flat at $35.25 in early afternoon trading on Tuesday after reporting its July and second quarter sales results.

Gap is expected to fully report its second quarter earnings results on August 20 at 1:00 pm Pacific Time. 

For the month ended July 31, net sales were $1.12 billion compared with net sales of $1.17 billion for the same period last year. 

That's a 3% drop for a key revenue measure for July. Analysts expected a 2.3% decline, according to Thomson Reuters.

Additionally, the apparel retailer reported a 7% drop in July same-store sales at its namesake Gap brand, with a 10% drop at Banana Republic.

The company also reported its 2015 second quarter net sales yesterday with revenue of $3.90 billion. This compares to revenue of $3.98 billion for the same period one year ago.

Analysts surveyed by Thomson Reuters had forecast earnings of $0.65 per share on revenue of $3.97 billion for the quarter.

The company expects its adjusted diluted earnings per share to be in the range of $0.63 to $0.64 for the second quarter of fiscal year 2015. 

Gap, based in San Francisco, is an apparel retail company that offers apparel, accessories, and personal care products under Gap, Banana Republic and Old Navy brands.

Separately, TheStreet Ratings team rates GAP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GAP INC (GPS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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