Gap announced that it was expected fiscal year 2015 earnings well below Wall Street estimates because of delays caused by the West Coast ports slowdown.
The retailer said its outlook for future earnings was negatively impacted by both he ports situation and currency issues, writing in its Thursday earnings release that it expects diluted earnings per share to be in the range of $2.75 to $2.80 for 2015. Analysts had expected $3.01 for the year, according to Thomson Reuters
Gap said the estimated negative impact of about 6 percentage points (about $0.16) due to foreign currency fluctuations, and 4 percentage points (approximately $0.13) due to "delayed merchandise receipts at West Coast ports."
Gap reported earnings of 75 cents per share on $4.71 billion in revenue. Analysts had expected the retailer to report earnings of about 74 cents per share on $4.71 billion in revenue, according to a consensus estimate from Thomson Reuters.