(Reuters) - Gap Inc fell short of Wall Street estimates for quarterly profit on Tuesday as a pivot to online sales fueled a surge in marketing and shipping costs, sending the apparel retailer’s shares down about 11% in extended trading.
FILE PHOTO: A woman shops at a Gap store as pre-Thanksgiving and Christmas holiday shopping accelerates at the King of Prussia Mall in King of Prussia, Pennsylvania, U.S. November 22, 2019.
Gap, which has launched digital campaigns such as “Stand United” and “Be the Future”, will continue to make marketing investments, Chief Executive Officer Sonia Syngal said.
Store sales declined 20% in the third quarter, and Gap reiterated its intention to close several hundred Gap and Banana Republic stores globally, while opening profitable Old Navy and Athleta stores.
Analysts had expected the company to earn 32 cents per share.
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