Clothing retailer Gap has reported a 19 per cent rise in quarterly profits, as its continuing cost-cutting measures offset a continuing fall in sales.

For the three months to August 4, the US firm made a net profit of $152m (£66m), up from $128m a year earlier.

While same-store sales - those at its outlets open more than 12 months - fell five per cent, overall sales dropped one per cent to $3.7bn.

Gap said it was improving its clothing lines and more carefully targeting consumers in their 20s.

Glenn Murphy, who became chairman and chief executive two months ago, said there had been "solid progress'" towards stabilising the business.