Gap (GPS, $18.65) misses earnings and revenue estimates, slashes full-year profit forecast

Gap Inc.’s fiscal first quarter earnings and revenue lagged way behind analysts’ estimates. The retail company also lowered its full-year earnings forecast.

Adjusted earnings for the quarter came in at 24 cents per share, compared to analysts’ expectations of 32 cents.  

The company’s total revenue of  $3.71 billion fell short of analysts’ estimates of $3.77 billion. Its same-store sales for the quarter plunged -4% year-over-year, which is a sharper drop than analysts’ estimates of -1.1% decline.

Gap’s Old Navy same-store sales decreased -1%, compared with the prior year’s +3% increase. Its Banana Republic same-store sales were down -3%, compared with +3% growth in the year-ago period.

Looking ahead, Gap predicts its adjusted earnings per share to range between $2.05 and $2.15 for the full-year, which is a lower projection compared with a prior forecasted range of $2.40 to $2.55.

Last week, Gap revealed its plans to close 130 Gap-branded stores in the fiscal fourth quarter.

Shares of Gap ended around -9% down on Friday.