Gap's profit down, cost cuts offset weak sales

Gap Inc on Thursday posted a lower quarterly profit, but cost cuts helped counteract a drop in sales at the global apparel retailer.

As previously reported, revenue fell 13 percent in the key holiday quarter to $4.1 billion, while same-store sales, a measure of retail financial performance, fell 14 percent.

The San Francisco-based company is in the midst of a turnaround as it tries to improve its product, stores and merchandising to recapture the loyalty of consumers who have gravitated to rival brands in recent years.

Shares closed at $11.35, down 2 percent, on the New York Stock Exchange.

(Reporting by Alexandria Sage; editing by Leslie Gevirtz)