NEW YORK — Gap Inc. said Thursday that it is shuttering 75 Old Navy and Banana Republic stores outside North America as the struggling company looks to focus on regions where it sees it has the greatest potential for success.

The closures represent just a fraction of the over 3,700 stores it operates globally. But the San Francisco-based retailer says it should save about $275 million a year before taxes.

Gap also indicated it might not meet its earlier profit forecast for the year, noting the clothing business would need to improve in order to achieve that goal.

The announcement comes as Gap reported a 47 percent drop in first-quarter profits, with revenue falling nearly 6 percent. All three brands – Gap, Old Navy and Banana Republic – suffered declines for a key sales measure.

Gap has long been struggling, unable to get shoppers to buy its clothes without offering big discounts. CEO Art Peck, who came to the helm in February 2015, has been trying to overhaul the business.


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