Gap is slashing its full-year sales outlook as Old Navy disappoints

Old Navy comparable sales grew just 1% in the first quarter, well below the 3% analysts had expected

Bloomberg / Getty Images

Gap $GPS cut its full-year sales forecast on Thursday after its largest brand, Old Navy, fell short of expectations in the first quarter, sending Gap stock down more than 14% in after-hours trading.

Analysts had forecast 3% comparable sales growth at Old Navy, but the brand managed only 1% in the first quarter. With Old Navy generating close to 60% of Gap's total revenue, its 1% comparable sales gain — against analyst expectations of 3%, per CNBC — dragged down the........

© Quartz