Slowdowns at Banana Republic and Athleta dragged down overall performance.
Gap offered a muted holiday forecast and expects sales to be flat or slightly negative.
Q3 earnings per share: 59 cents, adjusted vs. 19 cents expected.
Q3 revenue: $3.77 billion vs. $3.60 billion expected
Net income for Q3 was $218 million, down from $282 million a year earlier.
Same-store sales dropped 2% vs. expected 8.7% slowdown.
Gross margin improved by 3.9 percentage points to 41.3%.
Gap expects gross margins to continue to improve
Former Mattel executive Richard Dickson appointed as CEO to revive the brand.
Gap’s holiday quarter sales expected to be flat to slightly negative compared to last year.