SAN FRANCISCO (CBS/AP) – Gap Inc. is reporting a 40 percent drop in fourth-quarter profits, as the clothing retailer grappled with higher costs and discounted heavily to get shoppers in its stores during the crucial holiday season.
The San Francisco clothing chain said Thursday that it earned $218 million, or 44 cents per share, in the three-month period ended Jan. 28. That compares with $365 million, or 60 cents per share, in the year-ago period.
The retailer had sales of $4.28 billion, down from $4.36 billion in the year-ago period. Revenue at stores opened at least a year, a key metric of a retailer’s health, fell 4 percent.
Analysts had expected 42 cents per share on revenue of $4.28 billion, according to FactSet.
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