Gap says traffic patterns challenging, but backs forecast

SAN FRANCISCO—Apparel retailer Gap Inc. said Thursday traffic patterns and sales continue to be challenging but reaffirmed its earnings outlook for the year.

The company continues to expect earnings between $1.20 and $1.27 per share, while analysts polled by Thomson Financial, on average, expect a profit of $1.23 per share.

The San Francisco-based company said it expects 30 cents to 32 cents per share, including a $15 million tax benefit.

Analysts expect earnings of 27 cents per share. Analyst estimates usually exclude one-time items.