NEW YORK (TheStreet) -- Gap (GPS) - Get Report shares are being pressured, down 3.99% to $26.50 in after-hours trading Thursday, following the San Francisco-based apparel retailer's full year 2016 profit outlook along with its fourth quarter 2015 results.
Due to the strong dollar and weak sales at its Gap and Banana Republic brands, the company now anticipates earning between $2.20 a share and $2.25 a share for fiscal 2016. This is below analysts' expectations of $2.42 a share.
For the latest quarter, the company after the market close today, reported adjusted earnings of 57 cents a share, in line with estimates. Revenue came in at $4.39 billion, missing expectations of $4.46 billion.
Same-store sales for the quarter dropped 7%. By division, same-store sales declined both at Gap and Banana Republic by 6% and 10%, respectively.
Overall, foreign exchange adversely impacted the company's recent financial performance but, "We made significant progress in 2015 transforming our product operating model, enabling us to be more responsive to trends and market conditions, and consistently deliver on-brand product collections," CEO Art Peck said.
Gap also announced a new $1 billion share repurchase program, replacing an existing authorization.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GPS