San Francisco -- Gap Inc. on Thursday said its first-quarter profit dropped 22%, hurt by weakening foreign currencies.
The retailer earned $260 million in the three-month period ended May 3, down from $333 million in the year-ago period. Revenue increased 1.2% to $3.77 billion. Same-store sales were down 1%.
"After a disappointing start, I'm pleased with how the business performed toward the end of the quarter, especially at Old Navy,” said Glenn Murphy, chairman and CEO of Gap Inc. "We are confident in our strategies to drive long-term value, as evidenced by the reaffirmation of our full-year guidance."
Gap noted its ongoing expansion of its Athleta brand. With six new store openings during the first quarter of fiscal year 2014, Athleta is now on track to end the year with about 100 U.S. stores.
In fiscal year 2014, the company expects to open about 185 company-operated stores, focused on China, Old Navy in Japan, Athleta and global outlet stores. It expects to close about 70 company-operated stores.