Gap issues lackluster 2Q profit outlook

MarketsAssociated Press

Gap Inc. is issuing a second-quarter earnings forecast that's below Wall Street analysts' estimates.

The company blamed West Coast port delays, foreign currency fluctuations and strategic maneuvers the San Francisco-based company is taking to turn around its namesake brand.

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The earnings outlook, announced late Monday, comes as the retailer, which also operates Old Navy and Banana Republic, posted a 3 percent drop for a key revenue measure for July. Analysts expected a 2.3 percent drop.

The company, under its new CEO Art Peck, is aiming to turn around the business and announced in June that it was scaling back its Gap store foot print in North America. It plans to close 175 Gap stores in North America over the next few years, leaving about 800 open.