Gap Inc.On Thursday, the company projected that first quarter revenue would fall year-over-year after holiday sales fell below pre-pandemic levels.

The retailer also has the Old Navy and Banana Republic brands. Supply chain problems continue to be a problem. Sonia Syngal, chief executive of Gap, stated in a statement that Gap faced disruptions that could have a significant impact on its fourth-quarter fiscal performance.

Revenue contracted in Gap’s first quarter at a low-to-mid single-digit rate relative to last year. Analysts were expecting a decrease of 3.8%.

Gap’s comments echo the sentiment of other retailers who sell apparel, such as American Eagle Outfitters, Abercrombie & Fitch, Urban Outfitters Victoria’s SecretThey are now facing headwinds caused by rising inflation and a persistent labor crunch, as well as global unrest that was sparked in part by Russia’s invasion of Ukraine.

This week, each company spoke out about recent problems insuring merchandise due to supply chains constraints. These companies warned, however that rising costs and shipping prices could continue for at least the first six months of this year.

StreetAccount reported that Gap’s fourth-quarter gross margins fell to 33.7%, below analysts’ expectations of 35.2%. Gap stated that the company sold more denim and hoodies at full price, partially compensating for higher freight costs.

This is what Gap’s fourth quarter performance was compared to Wall Street’s expectations, according to Refinitiv’s analyst survey.

• Share loss– 2 Cents Adjusted vs. expected 14 Cents
• RevenueExpected: 4.53 billion, vs. 4.49 billion

In the three months ended January 29, Gap suffered a loss, of $16million or 4 cents per shares, as compared to net income, which was $234 million or 61 cents per share a year prior.

Gap’s loss of 2 cents per share was exempted from charges related to its European business. This is less than the 14-cent loss analysts were looking for according to Refinitiv data.

From $4.42 trillion a year ago, revenue grew by 2% to $4.53 Billion. The revenue grew by 2% to $4.53 billion, which was higher than estimates of $4.49 million. Gap’s sales fell 3% compared with 2019, however. This was partly due to planned and ongoing store closings.

Same-store sales — a key metric that tracks revenue at retail stores open for at least 12 months — grew 3% year over year, short of the 3.7% increase that analysts had been looking for. The same-store sales grew 3% on a year-over-year basis.

Here is the breakdown by brand of sales:

• Gap claimed that Old Navy’s problems were partly due to supply chain issues. The same-store sales dropped compared to 2019, according Gap.
• The Gap nameplate saw same-store sales rise 3% over a 2-year period, thanks to double-digit North American growth. According to the company, the brand will continue to expand in the months ahead thanks to the double-digit growth in North America. a recent tie-upWith WalmartFor home products, and also its collaboration with rapper Kanye West.
• Banana Republic reported that same-store sales decreased by 2% compared to 2019, mainly due to the ongoing closures of stores.
• Athleta’s women’s athletic clothing line, Gap, saw its same-store sales rise 42% in the past two years. According to the company, Athleta will still be able to reach $2 billion annually by 2023.

According to the retailer, inventories are expected to rise in the middle of the quarter compared to a year ago. This is due to the fact that it booked merchandise orders earlier than usual in an effort to compensate for longer shipping times.

Gap is expecting to make between $1.85-$2.05 per share on an adjusted basis for the whole year. Revenues are expected to grow by a single digit percentage starting in 2021. Analysts project annual adjusted per share earnings of $1.86 with sales increasing 1.6% over the prior year.

Get the complete financial press release by Gap here.

This is a developing story. Keep checking back for more updates.