Gap slashes forecast for earnings, shares drop

Gap reported third-quarter earnings after the market close on Thursday.

The retailer cut its forecast for full-year profits, amid a drop in comparable-store sales by 2% during the quarter.

Gap posted third-quarter adjusted earnings per share of $US0.63, in line with the consensus estimate among analysts according to Bloomberg. Net sales of $US3.86 billion also matched the forecast.

When Gap reported sales numbers earlier this month, it said weakness in the Canadian Dollar and the Japanese Yen were primarily to blame for a 3% decline in net sales.

“With a challenging third quarter behind us, we are sharply focused on holiday execution across all channels,” said CEO Art Peck in the earnings statement.

Shares fell by as much as 4% in after-hours trading.

More to come …

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