Summary Box: Gap 4Q profit drops 40 percent

AP News
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Posted: Feb 23, 2012 4:45 PM
Summary Box: Gap 4Q profit drops 40 percent

PROFIT DROP: Gap Inc. reported a 40 percent drop in fourth-quarter profit on higher costs and heavy discounting.

BEHIND THE FIGURES: The operator of Banana Republic, Gap, and Old Navy chains has struggled for years to reclaim its former fashion status. But a slowly recovering economy and higher production costs are compounding its woes.

WHAT'S NEXT: Gap says it expects earnings per share for the current year to be in the range of $1.75 to $1.80. Analysts expect $1.80 per share, according to FactSet.