- Hollis Johnson/Business Insider
Gap shares fell by as much as 14% in trading on Friday after the company reported March sales results that were weaker than expected.
Gap said in a statement Thursday that comparable-store sales, or sales at locations open at least one year, fell 6%, more than the Bloomberg expectation for a 5% drop.
Sales at Old Navy stores worldwide fell 6%, and they dropped 14% at Banana Republic.
“While March proved challenging, we remain focused on taking the necessary steps to improve results across the portfolio throughout the year,” Gap CFO Sabrina Simmons said.
The company said it saw its gross margin rate under pressure in the first quarter because of higher inventory.