Investing.com -- Shares in Gap Inc (NYSE:GPS) fell mildly in after-hours trading after the San Francisco-based retailer posted disappointing same-stores sales in the first quarter, which led to a slight reduction in net profits.
During the quarter, the company's net profit fell to $239 million or 0.56 EPS, from $260 million or 0.58 EPS in the same period a year earlier. A 10% dip in comparable-store sales at Gap, along with an 8% decline by Banana Republic weighed on company profits. Same-store sales at Gap's Old Navy brand rose by 0.3% in the quarter.
While Gap's sales fell to $3.66 billion from $3.77 billion in 2014, it still beat analysts EPS forecasts of 0.55 for the quarter.
“With our leadership team in place, we are making the changes necessary to improve our long-term performance, starting with an intense focus on greater product acceptance,” Gap CEO Art Peck said in a statement.
Gap's forward guidance for the rest of 2015 remained unchanged at $2.75 to $2.80 EPS. The guidance is in line with analysts' forecasts of $2.78.
“Old Navy’s performance gives me confidence – the team has hit the right formula and they are consistently delivering a truly inspirational experience that’s resonating with customers. Gap remains a top priority as we focus on reestablishing the brand’s aesthetic to bring to life an optimistic and elevated sense of American style," Peck said.
In terms of foreign exchange impact on the company, Gap said the translation of foreign currencies in to dollars resulted in a negative effect of $90 million due to a weakening Yen and Canadian Dollar.
Gap products are available at roughly 3,300 company-owned and 400 franchise-owned stories in more than 90 countries.
Shares in Gap dropped 0.11 or 0.29% in after-hours trading to 38.45.