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NEW YORK (

TheStreet

) -- Shares of

Gap

(GPS) - Get Gap, Inc. (GPS) Report

tanked in late trades on Thursday after the San Francisco-based fashion apparel retailer slashed its earnings outlook for 2011 because of higher product costs.

The company now sees earnings of $1.40 to $1.50 a share for the year. On Feb. 24, Gap forecast a profit of $1.88 to $1.93 a share in 2011. The current average estimate of analysts polled by

Thomson Reuters

is for earnings of $1.83 a share.

"While the company anticipated that the cost of goods would increase during the back half of the year, costs are actualizing above the initial estimates," Gap said in a press release. "The company now expects product costs per unit to be up about 20 percent in the back half of the year, which will more than outweigh retail price increases."

The stock was last quoted at $19.76, down 15%, on volume of more than 2 million, according to

Nasdaq.com

. Based on Thursday's regular session close at $23.29, the share were up 4.3% since the start of 2011.

Salesforce.com

Shares of

Salesforce.com

(CRM) - Get salesforce.com, inc. Report

TheStreet Recommends

jumped after the San Francisco-based cloud computing application developer beat Wall Street's expectations for its first quarter and gave an above-consensus outlook for the current quarter and full year.

The company posted a non-GAAP profit of $39 million, or 28 cents a share, in its fiscal first quarter ended in April on revenue of $504.4 million, besting the average analysts' view for earnings of 27 cents a share on revenue of $482.5 million. Revenue rose 34% year-over-year, as the company added 5,400 new customers, bringing its total to 97,700 as of April 30.

Salesforce.com said it sees adjusted earnings of 29 to 30 cents a share on revenue of between $526 million and $528 million for the second quarter ending in July, and a profit of $1.30 to $1.32 a share on revenue ranging from $2.15 billion to $2.17 billion. The current consensus estimates are for earnings of 26 cents a share and $1.27 a share respectively.

The stock was last quoted at $145, up 7%, on volume of around 980,000, according to

Nasdaq.com

. In the past year, the shares have jumped more than 60%, although the 52-week high of $151.26 came back in December.

Wall Street was still bullish ahead of the report with 27 of the 40 analysts covering the shares at either strong buy (11) and buy (16), and the median 12-month price target sitting at $165.

Aeropostale

Aeropostale

(ARO)

tumbled late on Thursday after the New York-based casual apparel retailer posted an in-line profit for the quarter and fell short on the top line.

The shares fell 12% to $18.70 on after-hours volume of 150,000 after Aeropostale reported first-quarter earnings of $16.4 million, or 20 cents a share, on sales of $469.2 million. The performance was down sharply from last year's profit of $45.4 million, or 48 cents a share, on sales of $463.6 million.

The average estimate of analysts polled by

Thomson Reuters

was for a profit of 20 cents a share in the April quarter on sales of $477.8 million.

Aeropostale said it sees earnings of 11 to 16 cents a share in the fiscal second quarter ending in July, short of Wall Street's current consensus estimate for a profit of 27 cents a share.

"Our outlook for the second quarter reflects our plans to aggressively clear through spring inventories to position ourselves appropriately for the important back to school selling season," said Thomas Johnson, the company's CEO, in a statement. "While we are disappointed with our current performance, we are confident that our entire organization is focused on the right initiatives to regain market share."

Other stocks drawing trading interest included

Footlocker

(FL) - Get Foot Locker, Inc. Report

, whose shares rose more than 8% to $24.12 on volume of around 85,000 after the company reported first-quarter earnings of $94 million, or 60 cents a share, up more than 70% year-over-year, as sales jumped 13% to $1.45 billion;

Popular

(BPOP) - Get Popular, Inc. Report

, which dropped almost 8% to $2.80 on volume of around 140,000 after the Puerto Rico-based bank terminated talks to sell a portfolio of bad construction and commercial real estate loans; and

Opnext

(OPXT)

, whose shares advanced 12% to $2.10 on volume of 90,000 after reporting its fiscal fourth-quarter results.

--

Written by Michael Baron in New York.

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Michael Baron

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