Gap's third-quarter profit drops nearly 18 percent

IndustriesAssociated Press

Gap says its third-quarter profit fell nearly 18 percent as costs related to store closures outside North America announced in May hurt results.

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The San Francisco, California-based retailer, which operates stores under its namesake brand as well as Banana Republic and Old Navy, earned $204 million, or 51 cents per share in the three-month period that ended Oct. 29. That compares with $248 million, or 61 cents per share, a year earlier.

Adjusted results were 60 cents per share, which matched estimates from FactSet. As previously reported, Gap posted revenue of $3.8 billion, down 1.5 percent from the year-ago period.

The company, which is struggling to reinvent itself amid changing consumer preferences, posted a 3 percent decline in revenue at stores open at least a year.