Gap shares are getting smoked.
In pre-market trading on Friday, shares of the retailer were down as much as 7.8% after reporting September sales that disappointed.
Sales at Gap in September fell 1% during the five weeks ending October 3 to $US1.46 billion against $US1.48 billion for the same period last year.
Same-store sales at the company’s Gap stores were flat, while Banana Republic sales fell 10% and Old Navy sales rose 4%. Gap sales were expected to fall 6.2%, so those results were better than expected, but Banana Republic and Old Navy sales both missed expectations.
Company-wide same-store sales fell 1% against expectations for a 1.6% decline.
In a statement, Gap CFO Sabrina Simmons said, “While September proved challenging, our leadership teams remain focused on taking the necessary steps to improve performance.”
Overall it’s been a challenging year for the retailer, which had seen shares decline 31% year-to-date through the close of trading on Thursday.