Apparel retailer Gap's full-year profit forecast misses estimates

Apparel retailer Gap Inc forecast full-year profit below analysts' estimates, hurt by a strong dollar and continued weak sales in its Banana Republic and Gap brands.

Gap said it expected adjusted profit of $2.20-$$2.25 per share for the full-year ending January 2017.

The forecast includes a pre-tax impact of over $120 million from a strong dollar, the company said on Thursday.

Analysts on average had expected a profit of $2.42 per share, according to Thomson Reuters I/B/E/S.

Gap's net income fell by a third to $214 million, or 53 cents per share, in the fourth quarter ended Jan. 30.

Excluding items, the company earned 57 cents per share, in line with the average analyst estimate.

Gap and many U.S. apparel retailers are also bearing the brunt of customers flocking to fast-fashion retailers such as H&M, Forever 21 and Inditex's Zara.

Revenue figure for the fourth quarter was unchanged from the $4.39 billion the company provided on Feb. 8.

Gap also announced on Thursday a new $1 billion share repurchase program, replacing an existing authorization.