For the full year, Gap expects to earn between $1.85 and $2.05 per share, on an adjusted basis, with sales growing a low single digit percentage from 2021. Analysts were projecting annual adjusted per-share earnings of $1.86, with sales up 1.6% from prior-year levels.

Is Gap a dying brand?

Gap's clothes defined an era, but the brand has been steadily declining for years. Can a collaboration with Kanye West revive its fortunes – or is it just another sign of a company flailing around for an identity?

Is Gap Inc failing?

Gap has consistently underperformed compared to its more successful sister brands, Athleta and Old Navy. In the same third quarter of 2021 in which Gap's net sales decreased 10% compared to 2019, Athleta and Old Navy increased net sales 48% and 8%, respectively.