Gap Expects Weaker Than Expected Q1 Profit, Sending Shares Lower
Gap shares sunk on Tuesday, after the retail giant warned investors that first quarter profit will likely fall short of Wall Street's estimates.
Gap (GPS) - Get Report shares sunk on Tuesday, after the retail giant warned investors that first quarter profit will likely fall short of Wall Street's estimates. On Monday, the company said it expects earnings of $0.31-$0.32 a share for the quarter, missing estimates of $0.44 a share. It also reported revenue of $3.44 billion, short of the $3.54 billion analysts had expected. Gap's comparable store sales fell five percent during the quarter. Aside from Gap stores, it operates Banana Republic and Old Navy retailers, brands the company says will be reevaluated, especially in overseas markets, in an effort to attract more customers. It will unveil first quarter earnings on May 19. TheStreet's Scott Gamm reports from Wall Street.
