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Gap Inc. shares tank as retailer misses earnings expectations, same-sale stores weaker

Shares of Gap Inc. GPS, +3.03% fell more than 10% past due Thursday after the retailer missed Wall Street's per-share earnings expectancies and its same-store gross sales grew lower than forecast. Gap stated it earned $164 million, or 42 cents a share, in the first quarter, compared with $143 million, or 36 cents a share in the first quarter of fiscal 2017. Sales rose 10% to $3.78 billion, from $3.44 billion a yr in the past. Analysts polled by way of FactSet had expected earnings of 44 cents a share on gross sales of $3.61 billion for the quarter. Comparable-store gross sales rose 1% in the quarter as gross sales at Old Navy retail outlets' misplaced steam, Gap retail outlets' gross sales were flat, and Banana Republic retail outlets' gross sales rose, Gap stated. The analysts surveyed by way of FactSet had expected a 1.7% build up in general same-store gross sales. The company reaffirmed its 2018 per-share earnings guidance in the range of $2.55 to $2.70 in spite of "the pressures we faced in the first quarter," Chief Financial Officer Teri List-Stoll stated in a remark. That reflects the company's "confidence in the underlying fundamentals of the business as well as the benefits of executing against our balanced growth strategy," List-Stoll stated. Comparable-store gross sales for 2018 are seen flat to up reasonably, Gap stated. Gap shares ended the regular buying and selling session up 3.3%.