By Yasin Ebrahim
Investing.com -- Gap Inc (NYSE:GPS) reported Thursday first-quarter results that missed analysts' forecasts and painted a gloomy picture for the year ahead after slashing guidance on growth as inflation-led squeeze on low-end consumers weigh.
Gap shares lost 13% in after-hours trade following the report.
Gap announced earnings per share of $-0.44 on revenue of $3.48B. Analysts polled by Investing.com anticipated EPS of $-0.1318 on revenue of $3.44B.
Results were pressured by a "slowed demand stemming from inflationary pressures impacting the lower-income consumer as well as continued inventory lateness to last year," Gap said.
Looking ahead, the retailer signaled pain ahead, pointing to "industry-wide headwinds as well as challenges at Old Navy."
For the full -year 2022, GAP expects adjusted EPS in the range of $0.30 to $0.60, down from a prior forecast of $1.85 to $2.05. The company now expects fiscal 2022 revenue to decline in the low to mid single digits range, compared with an earlier forecast for revenue to grow in the low single-digit.
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