Gap Plunging On Earnings

Shares of The Gap GPS are plunging in after hours after the company just reported quarterly earnings, after the company sharply lowered full year earnings estimates. The company reported quarterly earnings of 40 cents per share on $3.30 billion in revenues. Wall Street had been expecting earnings of 39 cents per share on $3.26 billion in revenues. "While we acknowledge that costing pressure is impacting our business, we're working hard to navigate this short-term macro challenge to our profitability in the current fiscal year,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “That said, our strategy remains the same – to deliver consistent, steady growth in North America while investing in our long-term global initiatives, especially in online and international.” Murphy added, “We are disappointed in our quarterly performance, however remain invigorated by the opportunities ahead. We're focused on making the necessary adjustments across the business to deliver the kind of sales we should expect from our brands.” Full the full year in 2011, Gap said it expects earnings of $1.40-$1.50 per share, well below the previous estimates of $1.880$1.93 per share. Wall Street had been expecting $1.84 per share in earnings. At last check, shares were off $2.80‎ or 12.02%‎ to $20.50.