Gap thud, which collapsed on Wall Street by about 20%, after the American retail company active in the clothing sector reported lower-than-expected quarterly results due to delays in production.
Earnings per share stood at just 27 cents, nearly half what analysts had expected.
Group CEO Sonia Syngal confirmed that Gap was the victim of the obstacles that hit the supply chain. Obstacles that “have affected our ability to fully hit the strong consumer demand”. And obstacles that, in general, have affected the supply chains of the whole world, with the supply that has not managed to adapt to the strong recovery in demand triggered by the reopening of the post-Covid-19 economies.
Gap accordingly closed the third quarter with a net loss of $ 152 million, or 40 cents per share, versus net income of $ 95 million, or 25 cents per share, for the same period in 2020.
Excluding the extraordinary balance sheet items, earnings per share stood at 27 cents, well below the 50 cents envisaged by the consensus.
Revenue fell to $ 3.94 billion, from $ 3.99 billion in Q3 2020, outperforming analysts’ estimated $ 4.44 billion.
Gap thus cut its estimates for the full year: it now expects revenue growth of 20%, compared to the + 30% previously forecast, and the + 28.4% year-on-year expected by analysts.
Full 2021 EPS on an adjusted basis is expected in a range of $ 1.25 to $ 1.40, up from the previous range of $ 2.10 to $ 2.25 and up from analysts’ estimated $ 2.20 per share.