Gap Inc.’s August comparable sales fell short of both analysts’ consensus estimates and year-ago levels.
While net sales were flat at $1.23 billion for the four weeks ended Aug. 30, comparable sales dropped 2 percent, with only the Old Navy brand landing in positive territory with a 2 percent increase.
Gap brand fell 6 percent versus a 2 percent gain a year ago and Banana Republic dropped 2 percent during the month.
On average, analysts surveyed by Thomson Reuters expected a 1.6 percent increase for the company’s comps, with Old Navy up 3.4 percent, Gap up 0.1 percent and Banana Republic up 0.7 percent.
“We’re encouraged by the positive momentum at Old Navy while focused on the necessary steps to drive improved performance across our portfolio of brands in the back half” of the year, said Glenn Murphy, chairman and chief executive officer of the San Francisco-based apparel retailer.
The company noted that the performance at Gap brand “will likely put pressure on the brand’s gross margins” in the new month.
Gap’s comps rose 2 percent in August 2013.
After rising 0.6 percent to $46.58 during regular trading hours, Gap’s stock quickly shed 5.6 percent, to $44, in the moments after the release of the August results.