Investing

Cramer: What is going on at Gap?

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Cramer talks Gap earnings

CNBC's Jim Cramer said Friday that Gap's disappointing earnings report and poor morale there was a "downer" for him.

"This was a very demoralizing call," he said on CNBC's "Squawk on the Street."

On Thursday the struggling company reported an 8 percent fall in quarterly profit, hurt by a stronger dollar and supply delays due to the West Coast port situation.

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However, Cramer was more disappointed in the company's conference call in which CEO Art Peck said Gap still had a long way to go before positive earnings can be seen.

"For those who want to think that Gap can turn very quickly, I found this call to be sobering. Sobering how it's going to be hard to do and depressing. I found the call depressing," Cramer said.

—Reuters contributed to this report.