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Gap Lowers FY21 Outlook Citing Supply Issues, High Air Freight Costs

American lifestyle retailer Gap Inc. (GPS) on Tuesday lowered its fiscal 2021 earnings and sales outlook, hit by supply chain constraints and high air freight expenses. The company's shares are down 15 percent in after-market trading.

The company now expects fiscal 2021 earnings per share to be in the range of $0.45 to $0.60, inclusive of a $325 million loss on extinguishment of debt and approximately $120 million in net charges related to divestitures and changes to its European operating model. Excluding these charges, earnings per share are expected to be in the range of $1.25 to $1.40.

The company now expects full-year revenue growth to be about twenty percent versus fiscal year 2020.

In after-market trading, the shares are down 15 percent to $19.86. GPS ended Tuesday's trade at $23.45, down $0.43.

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