Gap reaffirms 2008 profit guidance

"We are reaffirming our full year earnings guidance and will continue to use inventory and cost management to offset what we anticipate will be a challenging holiday season," said Chief Financial Officer Sabrina Simmons, in a statement.

The apparel retailer said it expects profit for the fiscal third quarter ended Nov. 1 between 33 cents and 35 cents per share. Sales for the quarter slid 8 percent to $3.56 billion, from $3.85 billion last year.

Analysts polled by Thomson Reuters, on average, expect a profit of 32 cents per share on slightly higher sales of $3.58 billion.

For the year, the company reaffirmed its prior forecast for profit between $1.30 per share and $1.35 per share. It did not offer a sales outlook.

Analysts expect profit of $1.33 per share, on sales of $14.85 billion.

The parent of its namesake stores, Banana Republic and Old Navy chains plans to report fiscal third-quarter results on Nov. 20.