Updated from 10:58 a.m. EST
(GPS - Get Report)
acknowledged Thursday that its third-quarter profits sank 41%, meeting analysts' lowered estimates, yet the slumping clothing retailer pledged to "fix its problems" and make management changes after a string of earnings warnings.
At the same time, the retail giant
disappointed Wall Street on Thursday with a third-quarter loss of $67 million, or 14 cents a share, compared with a profit of $27 million, or 5 cents a share, a year earlier. Analysts polled by
First Call/Thomson Financial
had expected a loss of 10 cents a share.
Gap, the San Francisco-based parent of
, reported earnings of $186 million, or 21 cents a share, down from $315 million, or 35 cents a share, in the comparable quarter of last year. Analysts had anticipated earnings of 21 cents a share after Gap said earlier this month that it likely would
its profit target.
Gap, which like other retailers across the country is struggling to offset the harsh effects of a slower economy, said sales climbed 12% to $3.4 billion in the quarter. Gap finished Thursday regular trading down $1.63, 6%, at $24.63.
Troy, Mich.-based Kmart said inventory liquidation cut into its regular sales during the quarter. The company posted overall sales of $8.2 billion, a 3% increase from $7.96 billion a year ago.
"We are building momentum," Chuck Conaway, Kmart's chairman and chief executive, said in a statement, "even though the average retail selling price declined 1.2%" in the latest quarter.
Shares of Kmart ended down 13 cents or 2%, at $5.81.