Gap Inc (NYSE:GPS) shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected earnings results and issued guidance below analyst estimates.
Gap said first-quarter revenue declined 13% year-over-year to $3.48 billion, which beat the estimate of $3.46 billion, according to data from Benzinga Pro. The company reported a quarterly loss of 44 cents per share, which missed the estimate for a loss of 13 cents per share.
"We are revising our fiscal 2022 outlook to reflect the impact of certain factors impacting our near-term performance, including execution challenges at Old Navy, an uncertain macro consumer environment, inflationary cost headwinds, and a slowdown in China that is impacting Gap Brand," said Katrina O'Connell, executive vice president and CFO of Gap.
Gap said it now expects full-year 2022 revenue to decline in the low to mid single-digit range. Full-year earnings are expected to be between 40 and 70 cents per share.
GPS Price Action: Gap has traded between $9.24 and $35.35 over a 52-week period.
The stock was down 12.8% at $9.71 at press time.
Photo: Mike Mozart from Flickr.
