(Reuters) – Gap Inc (NYSE 🙂 has cut its annual profit forecast for 2014, making it the latest U.S. retailer under threat from soaring prices and low demand amid decades of high inflation.

The company now anticipates fiscal 2022 profits between 30c and 60c per share, on an adjusted basis. This is a significant improvement from the $1.85 to $2.05 range earlier. According to Refinitiv IBES data, analysts estimated an average of $1.34.

Retailers, including Walmart (NYSE 🙂 Inc Target Corporation (NYSE:) has also predicted difficult times ahead, as increasing essential prices force consumers to cut back on big-ticket items like clothing and accessories.

Gap claimed that the first quarter’s gross margins were dragged down by increasing freight costs and deeper discounts at Old Navy (its biggest brand) by 930 basis point to 31.5%.

In a statement, the company stated that “Growth at Gap Brand was also adversely affected by COVID related forced lockdowns” and that it slowed overall China demand.

San Fransisco’s company is predicting a dismal future, just like its teen-wear peers American Eagle Outfitters (NYSE:) and Abercrombie & Fitch Co, which have also projected weaker profits for the year.

American Eagle reduced its operating profit forecast Thursday. It stated that the demand for its first quarter had been “well below” what it expected.

Jay Schottenstein (American Eagle Chief Executive) stated, “In hindsight we were way too optimistic about our year-end plans.”

Gap sales dropped to $3.48billion from $3.99billion one year prior. That’s just below the estimates of $3.46billion.