Gap Inc GPS is trading significantly lower Wednesday after the company announced worse-than-expected third-quarter financial results and cut guidance below estimates.
Gap reported quarterly earnings of 27 cents per share, which came in below the estimate of 50 cents per share. The company reported quarterly revenue of $3.94 billion, which came in below the estimate of $4.44 billion.
Gap cut its full-year 2021 adjusted earnings guidance from a range of $2.10 to $2.25 per share to a range of $1.25 to $1.40 per share versus the estimate of $2.20 per share.
"While we entered the third quarter with growing momentum, acute supply chain headwinds affected our ability to fully meet strong customer demand," said Sonia Syngal, CEO of Gap.
Syngal continued, "Still, we made an intentional investment in building enduring customer loyalty with accelerated use of air freight to serve them this holiday, choosing long-term growth opportunity over near-term impact to profitability."
See Also: Is There More Pain To Come For Gap Before 2022?
Gap retails apparel, accessories and personal-care products under the Gap, Old Navy, Banana Republic, Athleta and Intermix brands.
GPS Price Action: Gap has traded as high as $37.63 and as low as $19.10 over a 52-week period.
The stock was down 20.80% at $18.62 at time of publication.
Photo: Mike Mozart from Flickr.
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