Gap reports yet another round of disappointing profits for Q2

“I remain confident in our strategies to improve business performance and drive loyalty going forward”, said Art Peck, chief executive officer, Gap Inc. (GPS) on Thursday reported fiscal second-quarter profit of $219 million.

He’s also coping with a strong US dollar, which has hurt the value of overseas sales, and inventory problems stemming from delays at West Coast ports.

The company said net income fell by more than a third to $219m (£140m) or 52 cents per share, in the second quarter, from $332m, or 75 cents per share, a year earlier.

Excluding restructuring and lease buyout costs, the company earned 64 cents per share.

The company will also eliminate 250 positions at its headquarters. Net sales declined about 2 per cent to $3.9 billion in the period, which ended on August 1st.

The results were in line with estimates Gap gave last week.

Analysts polled by Thomson Reuters estimated earnings of $0.64 per share for the quarter.

Gap’s comparable sales for the quarter were down 2 percent versus flat past year.

The San Francisco-based apparel retailer said it expects to record about $130 million to $140 million in charges for the year as part of its overhaul of its struggling namesake brand. However, comparable sales at Old Navy Global gained 3 percent.