American clothing and accessories retailer Gap reported decline in its first-quarter profit.

Profit fell 8% to $239 million from $260 million a year earlier, as overall sales fell 3% to $3.7 billion. Online sales fell to $563 million from $575 million a year earlier. However, Gap is sticking with its full year earnings projections of $2.75 to $2.80 a share.

Gap is among the companies that are struggling with the impact of the strong dollar. The profit was hurt by currency fluctuations and persistent slow sales at its Gap and Banana Republic stores. However, company's Old Navy chain has fared better.

There was 3% rise in sales at Old Navy's stores. It borrowed techniques from fast fashion retailers, such as shortening its supply pipeline in order to test styles and quickly reorder items that sell well.

Chief Executive Art Peck said the Gap brand is starting to borrow some of those techniques. However, it also needs to do a better job of designing clothing and accessories that within the brand's aesthetic are trendy.

Mr. Peck brought back Wendi Goldman, a Gap veteran earlier this year. The aim was to control the design of the namesake brand. Although Mr. Peck said that she hit the ground running, Jeff Kirwan, the brand's president is happy with its performance so far.

After reporting a 10% drop in existing Gap stores Peck said that improvements might not be visible until next spring.

Gap Inc.'s sales and earnings were also hit by delayed shipments resulting from a slowdown at West Coast ports. The company said delays at the West Coast ports resulted in a greater amount of inventory being in transit during the period. Inventory was up about 4% at the end of the quarter.

The company anticipated inventory to be up slightly in the current quarter as it sells through some of the late-arriving goods.