Thursday, specialty retailer Gap Inc. (GPS) reported a 7% fall in its comparable store sales for the month of June, impacted by negative results in all of its divisions. Net sales for the month dropped 2%.
The San Francisco, California-based company reported net sales of $1.41 billion for the five-week period ended July 5, down from net sales of $1.44 billion for the same period in the previous year. Comparable store sales for the month declined 7%, compared to a 5% decrease a year ago.
Among divisions, comparable store sales in Gap North America dropped 5% compared to last year's 9% fall. In the Banana Republic North America division, compared store sales were a negative 5%, compared to 6% growth last year. Old Navy North America division reported a 10% decline in June comparable store sales, versus 7% drop in the previous year. In the International division, comparable store sales for the month was negative 7%, compared to flat results last year.
Sabrina Simmons, chief financial officer of Gap stated, "Our June sales events helped us successfully clear through summer merchandise at each brand. As a result, we achieved total company merchandise margins significantly above last year, and our stores are well-positioned for early fall product."
In the preceding month of May, Gap reported a 14% fall in its comparable store sales, compared to a 3% drop last year, hurt by continued weak sales at its struggling Old Navy division. The company's net sales for the month declined 8% to $1.09 billion.
The company's net sales for the 22 weeks ended July 5 fell 5% to $5.88 billion from prior year's net sales of $6.18 billion. Year-to-date comparable store sales decreased 11%, compared to a 4% drop last year.
Gap, which offers clothing, accessories and personal care products for men, women, children and babies, operates more than 3,100 stores in the US, the United Kingdom, Canada, France, Ireland and Japan.
Among others in the industry, Limited Brands Inc. (LTD), a specialty retailer of women's apparel and personal care products, reported a 9% decline in the comparable store sales for the month of June. Net sales also declined to $1.022 billion from $1.205 billion in the prior year period.
American Eagle Outfitters, Inc. (AEO) also reported an 11% fall in June comparable store sales, compared to an 8% rise last year. Total sales fell 5% to $255.9 million from $270.2 million in June 2007.
Another apparel retailer Abercrombie & Fitch Co. (ANF) reported a 6% rise in June net sales to $309.7 million from $293.2 million in the prior year, while comparable store sales dropped 3%.
Meanwhile, many retailers reported sales growth in the month of June, and according to some analysts, the $100 billion-plus tax-rebate checks, together with warmer weather, and semiannual sales and promotions related to Independence Day and Father's Day helped boost retailers' June results.
GPS closed Wednesday's regular trading session at $16.20, down $0.55, on a volume of 9.5 million shares. In the pre-market activity, shares edged down $0.14 or 0.86% to $16.06. In the past 52 weeks, shares have been trading in a range of $15.20-$22.02.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.