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SAN FRANCISCO (AP) — Gap says the strong dollar is hurting its revenue.
The retailer behind the Gap, Old Navy and Banana Republic brands said Monday that its first-quarter revenue fell 3 percent to $3.66 billion. The translation of foreign sales into U.S. dollars pushed this figure down by about $90 million, driven largely by the weakening Japanese yen and Canadian dollar. On a constant currency basis, its revenue would have fallen 1 percent.
Analysts surveyed by FactSet expected revenue of $3.76 billion.
Gap is one of many companies struggling with the impact of the strong dollar as sales in foreign currencies amount to less once they are translated back into U.S. dollars.
The retailer expects earnings between 55 and 56 cents per share with a 2 cent benefit tied to tax matters. Analysts expect 54 cents.