logo
  

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Consumer Product Safety Commission or CPSC announced recall of thousands of children's Robes made in China and sold exclusively on Amazon.com by various companies. The recalled robes fail to meet the federal flammability standards for children's sleepwear, posing a risk of burn injuries to children. Further, citing the same concerns, Paper Cape children's pajamas manufactured in Peru ... Health services company Cigna Corp. reported Friday higher profit in its fourth quarter reflecting growth in both Evernorth and Cigna Healthcare segments. Adjusted earnings and topline beat market estimates. Looking ahead for fiscal 2023, the company projects adjusted earnings and adjusted revenues to be higher than last year, but below market view. French drug major Sanofi SA reported Friday higher profit in its fourth quarter with strong revenue growth mainly with strong sales of Dupixent. Looking ahead for fiscal 2023, the company projects higher business earnings, but the expected growth is slower than recorded in fiscal 2022. Sanofi shares were losing around 4 percent in the morning trading in Paris as well as in pre-market activity...
RELATED NEWS
Follow RTT