Mind The Gap Of Declining Sales

Gap has said it expects pressure on sales to continue across the summer, after reporting a further decline in May. The company reported net sales of $1.17bn for the four weeks to May 28, a 3 per cent year-on-year fall. Comparable store sales for May fell by 8 per cent compared with a 6 per cent increase in May 2004.

Sabrina Simmons, senior vice president, treasury and investor relations, said: "Overall, total company sales were disappointing in May and merchandise margins were meaningfully below last year." Comparable store sales by division for May saw a 9 per cent decline in Gap North America, a 7 per cent dip at Banana Republic and an 8 per cent fall at Old Navy. Gap International comparable store sales were down 2 per cent.

In the first four months of the financial year, group comparable store sales are down 5 per cent compared with a 7 per cent increase in same period a year ago.