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Gap cuts full-year earnings forecast

NEW YORK, February 28, 2015

Apparel retailer Gap forecast a drop in full-year profit, citing a strong dollar, shipment delays due to disruptions at US West Coast ports and declining sales at its flagship Gap brand.

The company said it appointed a new design chief for Gap, the latest move in its efforts to revive the brand whose popularity has waned in recent years as shoppers favour fast-fashion brands such as Zara and Forever 21.

The company named Wendi Goldman as executive vice-president of Gap's product design and development team, a month after it eliminated the role of brand creative director.

Goldman has previously worked at Victoria's Secret maker L Brands as co-president.

Gap said it expects to earn $2.75-$2.8 per share for the year ending January 2016, lower than the average analyst estimate of $2.81, according to Thomson Reuters I/B/E/S.

Gap reported a profit of $2.87 per share for the year ended January 31.

Fourth-quarter net income rose four per cent to $319 million, or 75 cents per share.

The group's revenue rose 2.8 per cent to $4.71 billion. Overall comparable sales rose two per cent.-Reuters




Tags: earnings | Apparel | gap |

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