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Gap Cuts Full-Year Forecast by 22% as Costs Soar

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Gap Inc., the largest U.S. apparel chain, cut its full-year profit forecast by 22 percent as costs to make clothes rose faster than expected. The shares tumbled.

Gap fell as much as $3.44, or 15 percent, to $19.85 in extended trading, after closing up 21 cents to $23.29 at 4 p.m. in New York Stock Exchange composite trading.