Gap Stock Drops With Earns Warning
SAN FRANCISCO (AP) _ Shares of Gap Inc. fell by nearly 6.5 percent in after-hours trading on Wednesday after the company said second-quarter earnings would likely be below Wall Street’s expectations.
Citing sluggish sales in July, the San Francisco-based clothing retailer said earnings per share likely will be 2 to 3 cents below the 23 cents estimated by analysts surveyed by First Call/Thomson Financial.
Gap shares dropped 93 cents to $37.94 in regular trading Wednesday on the New York Stock Exchange, and plummeted to $35.50, down $2.44, in after-hours trading.
Gap officials issued the warning after getting ``weaker than expected results″ in July. Other major department store retailers nationwide have also been reporting slow summer sales.
Gap sales for the four weeks ended July 29 increased 22 percent to $851 million from the year-ago period. The comparable store sales for July dropped 1 percent compared to a 2 percent increase in July 1999.
The company said its domestic unit reported July sales growth in the low double digits; Banana Republic had flat growth; and Old Navy slipped.
Comparable store sales for the 26 weeks ended July 29 decreased 2 percent, the company said. It increased 10 percent in the year-ago period.