These 5 Companies Recently Cut Their Profit Forecast

1. The Gap, Inc. (NYSE:GPS)

Number of Hedge Fund Holders: 23

The Gap, Inc. (NYSE:GPS) is a California-based apparel retail company, selling its products under the Old Navy, Gap, Banana Republic, and Athleta brands. On May 26, the company announced its Q1 financial results, reporting a loss per share of $0.44, missing estimates by $0.31. The revenue of $3.48 billion dropped 12.88% year-over-year, falling short of consensus estimates by $12.52 million. 

The company slashed its full-year profit outlook after the Q1 results were disclosed, citing poor design and execution issues at its Old Navy line and weak demand as a result of record-high inflation. The company also posted weak numbers due to increased cost of air freight and extended discounts to balance inventory. The Gap, Inc. (NYSE:GPS) now projects fiscal 2022 profit per share to lie between 30 cents and 60 cents on an adjusted basis, compared to the prior forecast of $1.85 to $2.05. 

According to Insider Monkey’s database, 23 hedge funds were bullish on The Gap, Inc. (NYSE:GPS) at the end of March 2022, down from 30 funds in the last quarter. Billionaire Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 5.2 million shares worth $73.8 million. 

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