GapSonia Syngal, CEO on Tuesday defended the apparel retailer’s air freight investmentsCNBC interviewed him. Jim CramerIt was worth looking ahead to the holiday season for the potential profitability implications.

The following is a “Mad Money”Syngal spoke out after Gap’s disappointed quarterly results and said that they took the costly transport steps necessary to get around what was proving to be much longer than anticipated Covid closings in Vietnamese factories.

Syngal spoke of Old Navy and Gap as well as Banana Republic and Athleta.

As global pandemic-related issues continue to disrupt supply chains, Gap is not the only retailer facing inventory challenges. Syngal acknowledged that Gap faces supply-related problems.

“About half a billion top line [revenue]Stock outs and the approximately half-billion transitory airline costs we are incurring to make sure products reach their end markets were some of the factors that have affected us,” she stated.

Wall Street reacting to Gap’s third quarter results and changes in forecasts, extended trading on Tuesday saw a 16% plunge in shares of the stock. According to Refinitiv. Gap received an adjusted 27c per share. That’s a difference of estimates of 50cs. The expected sales of $4.44 billion were not met by $3.94 Billion.

Refinitiv polled analysts and found the company had lowered earnings guidance for full year.

Syngal stated that she would prefer to have a shortage than a need problem, and that is what Syngal was navigating. While Syngal admitted that she was “disappointed” in this quarter, the CEO stressed that everything was in “focus and support of our customers and competing in holidays.”

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