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Aug 24 (Reuters) - Gap Inc forecast third-quarter sales below expectations and missed Wall Street estimates for quarterly sales on Thursday, hit by softness in demand as budget-strained American customers cut back their spending on accessories and apparel.
Consumers, especially in the lower to middle-income rungs, have focused on essential purchases and cut back on discretionary spending as persistent inflation and interest rate hikes strain household budgets
Gap's results were parallel to the latest earnings and forecasts from retailers ranging from Macy's to Foot Locker, which offered fresh signs U.S. consumer spending is under stress heading into the second half of the year.
The owner of Banana Republic and Athleta brands expects third-quarter net sales to decrease in the low double-digit percentage range, compared with analysts' expectations of a 6.76% decline, according to Refinitiv data.
The company's net sales fell to $3.55 billion in the second quarter from $3.86 billion a year earlier. Analysts on average had estimated sales of $3.57 billion, according to Refinitiv data.
Shares of the company were up about 2% in extended trading.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Kate Masters in New York; Editing by Krishna Chandra Eluri)
