At last check Gap shares were up 1.4%. They'd closed the regular session Thursday off 0.4% at $16.22.
In the quarter ended Nov. 2 the San Francisco company earned 37 cents a share compared with 69 cents in the year-earlier period. The latest adjusted earnings were 53 cents.
Revenue came in at $4 billion, off 2.2% from $4.09 billion.
Analysts surveyed by FactSet were expecting the company to report earnings of 50 cents a share on revenue of $3.97 billion.
Gap affirmed that for fiscal 2020 it expects to earn $1.38 to $1.47 a share, or an adjusted $1.70 to $1.75. The FactSet-derived survey was looking for $1.77.
"We are not pleased with the third-quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands," interim President and Chief Executive Robert J. Fisher. said in a statement
"We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation."
Two weeks ago, Gap slashed its full-year earnings forecast and said CEO Art Peck would be stepping down.
Peck, who had led the group since 2015, had steered plans to close more than half the Gap-branded stores and spin off its Old Navy division into a stand-alone business by 2020. He was succeeded by Fisher, who is chairman and a member of the retailer's founding family.
Gap said Friday it continued to believe in the "strategic rationale for the planned separation of Old Navy."
Earlier this year, Peck unveiled plans to split off the better-performing Old Navy brand, telling investors it would be run by current brand CEO Sonia Syngal.