Gap Sees Weak Annual Sales as Inflation-Hit Consumers Rein in Spending

Gap Inc on Thursday forecast full-year sales below Wall Street estimates, signaling a slowdown in demand as inflation-weary consumers curb discretionary spending.

Shares of the company fell about 7 percent in extended trading.

With the Federal Reserve prepared to raise interest rates more than expected in an attempt to control inflation, consumers, especially at the lower- to mid-income rung, have turned more cautious and curbed spending on…