Gap Q3 In Line, Stock Sags

Shares of Gap (GPS) are sinking mildly this afternoon after the company announced Q3 sales and profit in line with estimates, and a record operating margin, but said selling expenses will rise this quarter.

Sales rose slightly year over year to $3.59 billion, a tad ahead of the $3.58 billlion analysts were expecting, while profit per share of 44 cents was well ahead of expectations and way above the prior year’s 35 cents. Same-store sales were flat year over year, an improvement from last year’s 12% decline. The company expects a rise of $100 million in selling, general and administrative costs this quarter. Gap stock was down 46 cents, or 2%, at $21.75, in late trading after falling about 2% during the regular session.

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