Gap reports fall in profits for the first time in 4 years

Gap reports fall in profits for the first time in 4 years

The largest US based clothing chain Gap Inc. has reported that the company suffered falling profits this year. The shares of the company are expected to fall because of this poor result displayed by the company.

Chief Executive Officer Paul Pressler added in a statement that the company is planning to remodel its top 200 Gap stores and bolster marketing after reporting a slump in fourth-quarter sales.

Gap has also forecast fiscal 2006 earnings below analyst estimates. Pressler said: “None of us is satisfied. We are 100 percent focused on improving the product.” The company is also planning to now focus on sales of T-shirts, denim and casual pants as well as adding new washes to its jeans.

Gap also has plans to launching new mannequins and merchandise signs.