SAN FRANCISCO: Gap Inc on Thursday cut its profit outlook for the year after reporting disappointing sales for its third quarter. The San Francisco-based clothing retailer said sales fell four per cent at established Gap locations, following a five per cent drop in the year-ago period. Banana Republic fell 12 per cent, after sales were flat a year ago. The bright spot was Old Navy, which saw a four per cent increase, after a one per cent jump in the year-ago period. The firm, which is struggling to turn around its namesake brand, said Gap’s leadership team is making progress with a plan that includes ‘actions to build a smaller, more vibrant fleet of stores’. Gap now expects full-year adjusted earnings in the range of $2.38 to $2.42 per share. Previously, the company said it expected profit of $2.75 to $2.80 per share.