Gap Inc (NYSE:GPS) stock was hit hard on Friday following the release of its earnings report for the third quarter of 2016.
Gap Inc reaffirmed its outlook for the full year of 2016 in its earnings report for the third quarter of the year. The company is expecting earnings per share for 2016 to be between $1.87 and $1.92. This falls below Wall Street’s earnings per share estimate of $2.02 for 2016.
Gap Inc reported revenue of $3.80 billion during its third quarter of 2016. Revenue reported by the apparel retail company in the third quarter of 2015 was $3.86 billion. Analysts were expecting the company to report revenue of $3.74 billion in the third quarter of the year.
Earnings per share reported by Gap Inc in the third quarter of 2016 was 60 cents. This is 3 cents below earnings per share reported during the same time of last year. However, it did manage to meet what Wall Street was looking for from earnings per share in the quarter.
Net income reported by Gap Inc in the third quarter of 2016 was $204 million. The retailer reported net income of $248 million in the third quarter of the year prior.
GPS reported that comparable sales for the third quarter of 2016 were down 3% from the same time last year. Gap Global comparable sales were down 8%, Banana Republic Global comparable sales were also down 8% and Old Navy Global comparable sales were up 3% during the quarter.
Gap Inc closed 28 and opened 36 company-operated stores in the third quarter of 2016. This left it with a total of 3,742 locations at the end of the quarter.
GPS stock was down 15% as of Noon Friday.
