The Gap

Posted October 7, 2005

Gap Inc. reported a 3 percent decrease in net sales for the five-week period ended Oct. 1, 2005. Same-store sales decreased 6 percent.

By division, same-store sales were: down 3 percent for Gap North America; down 13 percent for Gap Intl.; down 7 percent for Banana Republic North America; and down 7 percent for Old Navy North America.

“September sales results were very disappointing as we faced continued challenges with traffic and product performance across all brands,” said Sabrina Simmons, senior vp, treasury and investor relations. “Due to the significant miss in unit sales, merchandise margins through September are trending substantially below last year and we expect increased margin pressure in October as we work to clear product.”

Year-to-date net sales are down 1 percent and year-to-date same-store sales decreased 5 percent.