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Apparel retailer Gap Inc. said Thursday that its second-quarter profit rose 51%, despite a sales decline, helped by cost cutting and tight control on inventory.

The San Francisco-based company said profit for the 3 months ended Aug. 2 rose 51% to $229 million, or 32 cents per share, from $152 million, or 19 cents per share, a year earlier.

Analysts polled by Thomson Reuters predicted a profit of 30 cents per share, and the company had forecast earnings of 30 cents to 31 cents per share.

Revenue fell 5% to $3.5 billion from $3.69 billion last year; analysts had expected revenue of $3.52 billion.

Sales in stores open at least 1 year - a key retail metric known as same-store sales - fell 10%. In North America, same-store sales declined by 6% at both Gap and Banana Republic, and fell 16% at Old Navy. International same-store sales also fell 6% free credit report instantly.

Inventory per square foot fell 17% year-over-year.

Gap (GPS, Fortune 500) reaffirmed earnings guidance of $1.30 to $1.35 per share for the year, while analysts expect a profit of $1.34 per share.

The company said it will open 15 fewer stores, mainly Banana Republic stores, than previously expected during the year, and now expects to open a total of 100 stores.

Earlier on Thursday, Gap named Tom Wyatt, a 30-year retail veteran, as president of its struggling Old Navy chain.

Wyatt, 53, had served as acting president of Old Navy since February, when Dawn Robertson stepped down after struggling for 16 months to turn the division around. 

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