Gap

Gap Inc. (San Francisco) reported a 3 percent net sales increase for the five-week period ended July 2, 2005. Same-store sales were flat.

Same-store sales by division were: Gap North America, up 3 percent; Banana Republic North America, down 6 percent; Old Navy North America, flat; and International, up 1 percent (versus a negative 11 percent a year ago).

“June was a transitional month as all of our brands worked to clear summer merchandise in preparation for new product flows which will arrive in July,” said Sabrina Simmons, senior vp, treasury and investor relations. “Merchandise margins for the month were slightly below June of last year.”

Year-to-date net sales are down 1 percent for the 22 weeks ended July 2. The company’s year-to-date same-store sales are down 4 percent.