U.S. News

Gap Profit Falls, But Exceeds Consensus Forecasts

Boone T. Pickens
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Struggling apparel giant Gap Inc. said after U.S. markets closed Thursday that fourth-quarter net profit fell 35% on lower or flat sales at its two main casual clothing chains and dependence on holiday season discounts.

The global retailer, which is searching for a new chief executive after the January departure of Paul Pressler, said net income dropped to $219 million, or 27 cents a share, from $337 million, or 39 cents a share, a year earlier.

Analysts, on average, expected earnings of 24 cents, according to Thomson Financial.

Total sales at Gap, which sold America on the casual office wear trend of khakis and T-shirts, were $4.9 billion, up nearly 2% from $4.82 billion a year ago, as announced last month.