As part of a restructuring, clothing retailer Gap will close its fleet of 53 Old Navy stores in Japan. All told, the company is shuttering 75 stores in an effort to save $275 million annually.



Gap shares quickly jumped 5.5 percent on the news before giving back some of the gains. The stock was last up about more than 3 percent in after-hours trading.

The retailer posted adjusted fiscal first-quarter earnings of 32 cents on revenue of $3.44 billion. Analysts had expected earnings of 32 cents a share on sales of $3.51 billion, according to a consensus estimate from Thomson Reuters. Earnings were down from 56 cents a share a year earlier and revenue fell from $3.66 billion.

Gap said it saw its comparable-store sales decline 5 percent during the quarter. To reposition itself for long-term growth, the company said it will "focus on geographies with the greatest potential" and "streamline its operating model."