Gap’s 3rd Quarter Profit Drops 36 Percent

SAN FRANCISCO (CBS SF) – Gap is reporting a 36 percent drop in third-quarter profit, as deep discounting and higher production costs continue to hurt the company.

The San Francisco-based clothing company said late Thursday that it earned $193 million, or 38 cents per share, for the three months that ended Oct. 29.

Its overall revenue slipped just 1.8 percent to $3.58 billion, while revenue at stores open at least a year dropped 5 percent, including online sales.

The profit was slightly better than analysts expected, however. They were looking for earnings of 36 cents per share and revenue of $3.59 billion.

The company, which operates the Gap, Old Navy, Banana Republic and Athleta chains, stood by its forecast for full-year profit of $1.40 to $1.50 per share. Analysts expect $1.50 per share.

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