(Gap) Shares of Gap Inc. fell more than 17% on Friday in premarket after booking net sales of $3.5 billion, down by 13% from the prior year.
The decline in net sales in the fiscal quarter was related to the loss of stimulus impacts, divestitures, store closures, as well as the transition of the European business to a partnership model.
Gap’s comparable sales declined 14% from the prior year, while online sales were down by 17% in the same period.
The company plunged into a net loss of $162 million or diluted earnings per share loss of $0.44, compared to a net income of $166 million or a diluted $0.43 per share in the prior year.
Gap expects its revenue in 2022 to be in the low to mid-single-digit range compared to the prior year. Adjusted diluted EPS is expected in the range of $0.30 to $0.60.
GPS: NYSE is down -17.18% in premarket.
