RETAILING

Gap’s Earnings Tumble 21%: The San Francisco-based clothing retailer posted a profit of $50.1 million, or 35 cents a share, for its fiscal first quarter ended April 29, a result of lower margins and disappointing sales. That’s down from $63.5 million, or 44 cents a share, in the comparable 1994 quarter. Sales were $848 million, compared to $751 million in the same period a year earlier. “We enter the second quarter with the same issues that confronted us in the first quarter: lower initial merchandise margins, a challenging retail sales environment and a difficult comparison to record prior-year earnings,” said Chairman and CEO Donald G. Fisher.