Earnings per share in the year through January will be $2.73 to $2.78, the company said. That's below the company's earlier guidance of $2.95 to $3. Analysts estimated $2.91, on average, Bloomberg said.
CEO Glenn Murphy has been working to improve merchandise at Gap-brand stores, which have cut prices to clear out slow-selling styles. Same-store sales at Gap slid 5 percent in the quarter. Murphy, 52, said last month that he'll step down as CEO in February and hand the reins to Art Peck, president of Gap's growth, innovation and digital unit, Bloomberg noted.
Net income for the quarter ended Nov. 1 was up 4.2% to $351 million, or 80 cents a share, from $337 million, or 72 cents, a year ago. The average of analysts' estimates compiled by Bloomberg was 79 cents.
Net sales declined 0.1% to $3.97 billion.