Apparel retailer The Gap Inc. ( GPS ) late Thursday said its first quarter profit fell 23% from last year and significantly cut its full-year outlook, sending its shares plunging in aftermarket trading.
The San Francisco-based company reported first quarter net income of $233 million, or 40 cents per share, compared with $302 million, or 45 cents per share, in the year-ago period.
Sales fell 1% from last year to $3.3 billion.
On average, Wall Street analysts expected a slightly smaller profit of 39 cents per share, on matching revenue of $3.3 billion.
The real story of Gap's earnings report was its weakened outlook. The company said it now expects full-year profit to range from $1.40 to $1.50 per share, down from a prior forecast of $1.88 to $1.93. Analysts expected $1.84 per share for the year.
The Gap shares plunged $4.18, or -18%, in premarket trading Friday.
The Bottom Line
Shares of Gap Inc. ( GPS ) have a 1.93% dividend yield, based on last night's closing stock price of $23.29. The stock has technical support in the $18-$19 price area. If the shares can firm back up, we see overhead resistance around the $22-$23 price levels.
The Gap Inc. ( GPS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Created by Dividend.com