Gap Inc. reported declining profits as Athleta continues to weigh on its performance. The apparel giant, which owns Old Navy, Banana Republic, and its namesake brand, said same-store sales at Athleta fell 10% as the company focuses on rebuilding the struggling activewear label.

This marks another setback for Gap's turnaround efforts, with Athleta having been a growth driver in recent years. The company's broader portfolio faces challenges from changing consumer preferences and increased competition in the retail apparel sector. Gap has been attempting to revitalize its brands through store closures and digital investments.

The disappointing Athleta results highlight the difficulties Gap faces in maintaining momentum across its brand portfolio. With same-store sales declining at the activewear chain, investors will be watching closely to see if Gap's strategic initiatives can reverse the trend and restore profitability to this once-promising segment.