Gap's 1Q profit falls 8 percent on currency rates, sluggish sales at Gap

MarketsAssociated Press

Gap Inc. is reporting an 8 percent decline in its first-quarter profit, as results were hurt by currency fluctuations and persistent sluggish sales at Gap and Banana Republic.

The San Francisco-based retailer reported earnings of $239 million, or 56 cents per share, for the three-month period ended May 2. That compares with $260 million, or 58 cents per share, for the year-ago period. Revenue slipped 3.1 percent to $3.66 billion.

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As reported earlier this month, revenue at stores opened at least a year fell 4 percent. That includes an 8 percent drop at Banana Republic, a 10 percent drop at Gap and a 3 percent increase at lower-priced Old Navy, the company's strong spot.

Gap has long been struggling with an uneven performance of its brands.