Gap falls after cutting forecasts

Shares in clothing retailer Gap fell 13 per cent after it slashed its full-year profit outlook yesterday on rising cotton and production costs. Net income in its first-quarter, which ended on 30 April, fell 22.8 per cent to $233m (£144m), or 40 cents per share, from $302m, or 45 cents per share, a year earlier. It said it now expects to earn $1.40 to $1.50 per share in the fiscal year ending in January 2012, down from the $1.88 to $1.93 it had predicted in February.