Gap, Aeropostale shares dive after results as costs, discounts

Shares of clothes retailers Gap Inc (GPS.N) and Aeropostale Inc (ARO.N) fell on Friday, a day after the companies said higher input costs and discounts would hurt profitability.

Gap shares fell as much as 18 percent, while Aeropostale was down as much as 20 percent -- making them the top two losers on the New York Stock Exchange.

The S&P Retail Index .RLX was down 1.6 percent.

"Some of the companies that have pricing power have not had the same kind of results as Gap did. That, maybe, tells you something about the strength and quality of the brands," said Jay Kaplan, portfolio manager with Royce & Associates.

Kaplan does not own Gap or Aeropostale shares, but has a stake in rival American Eagle Outfitters (AEO.N) and Buckle Inc (BKE.N).

Read Full Article from Reuters

- Posted: 2011-05-20 12:08:48

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