This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Gap Meets Lowered Expectations; Kmart Disappoints

Updated from 10:58 a.m. EST

Gap (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 Kmart (KM) 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 Old Navy and Banana Republic, 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 miss 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
GPS $42.83 1.00%
AAPL $123.22 -0.82%
FB $83.30 0.35%
GOOG $548.13 -1.30%
TSLA $185.15 -2.80%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs