Gap issues lacklustre outlook

GapGap Inc is issuing a second quarter earnings forecast that’s below Wall Street analysts’ estimates.

The company blamed West Coast port delays, foreign currency fluctuations and strategic manoeuvres the San Francisco-based company is taking to turn around its namesake brand.

The earnings outlook, announced late on Monday, comes as the retailer, which also operates Old Navy and Banana Republic, posted a three per cent drop for a key revenue measure for July.

Analysts expected a 2.3 per cent drop.

The company, under its new CEO Art Peck, is aiming to turn around the business and announced in June that it was scaling back its Gap store footprint in North America.

It plans to close 175 Gap stores in North America over the next few years, leaving about 800 open.

AP

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