Gap said profit was lower for the past three months of the year, hurt by the costs of closing its Forth & Towne arm.
Unexciting designs have hurt Gap sales as customers go elsewhere
The clothing retailer said in February it would not pursue a roll-out of the concept, instead focusing on turning round its core Gap and Old Navy brands.
Net income was $178m (£89.6m), in contrast with $242m reported in the same period a year ago.
Gap has not seen a rise in quarterly same-store sales since 2004 and is currently looking for a new boss.
The retailer, which also owns the Banana Republic brand, is seeking a new chief executive after Paul Pressler stepped down in January by mutual agreement.
Gap's non-executive director Robert Fisher has taken over as temporary head of Gap.
He said finding a leader with suitable experience to help the retailer, which has 3,000 stores worldwide, regain its iconic position in casual fashion, would take some time.
Forth & Towne was set up 18 months ago to target fashion-aware baby boomers. The last stores, open in 10 US markets, will close in June.