Gap Shares Fall After Profit, Outlook Miss Estimates

Gap Inc. shares fell 3.2% in after-hours trading on Thursday, after the company's adjusted third-quarter profit and updated full-year outlook missed Wall Street expectations. Third-quarter profit rose to $351 million, or 80 cents a share, from $337 million, or 72 cents, a year earlier. Excluding a 6-cent benefit from a lower tax rate, profit was 74 cents a share. That missed the 76-cent FactSet consensus estimate. Sales fell to $3.97 billion from $3.98 billion. Gap forecast full-year profit of $2.73 to $2.78 a share. That missed the consensus estimate of $2.83 a share. In a separate release, Gap named Jeff Kirwan, currently president of its greater China business, as global president for the Gap brand. He'll replace Stephen Sunnucks, who'll leave Gap in December. Andi Owen, who currently heads the Gap outlet unit, will become global president for Banana Republic.