By Micah Maidenberg

Gap Inc. earned a profit of $266 million, or 69 cents a share, during the third quarter, but the company said its same-store sales were flat, dragged down by weakness in the flagship Gap brand.

Analysts polled by FactSet expected a profit of 67 cents a share in earnings for the quarter.

Sales rose 7% in the third quarter to $4.09 billion, surpassing the $3.99 billion analysts forecasted.

The retailer said same-store sales for Gap shops fell 7% in the quarter, compared to a 1% gain last year. Old Navy same-store sales were up 4%, the same as a year ago, and Banana Republic reported a 2% gain, better than last year's drop of 1%.

Gap lowered its full-fiscal year profit guidance Tuesday, saying it now anticipates earnings of $2.55 a share to $2.60 a share, compared to the previous guidance of $2.55 a share to $2.70 a share.

The retailer also said it still believes comparable sales for its fiscal year will be flat to slightly up during the year.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

November 20, 2018 16:54 ET (21:54 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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