Cramer: What is going on at Gap?

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.

Read MoreGap's profit falls 8 pct due to strong dollar, supply delays

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.