Gap's Stock Falls After Sales Miss Expectations

Gap Inc.'s stock slid 2.3% in after-hours trade Monday, after the apparel retailer reporting fiscal first-quarter sales that fell below expectations. For the quarter ended May 2, net sales fell to $3.66 billion from $3.77 billion a year ago, missing the FactSet consensus of $3.76 billion. Same-store sales declined 4%, compared with the FactSet consensus of a 1.8% decline, weighed by disappointing quarterly performances by Gap Global and Banana Republic, and a 12% same-store sales drop in April. The company expects first-quarter earnings per share of 55 cents to 56 cents. The outlook includes a benefit of 2 cents a share related to a reversal of interest expense. The FactSet consensus is for EPS of 54 cents. The stock has lost 5.3% year to date through Monday, while the SPDR S&P Retail ETF has advanced 3.3% and the S&P 500 has gained 2.3%.