Gap falls 6.1% on declining sales revenue

Gap fell as much as 6.1 per cent after declining sales at its namesake chain and Banana Republic hurt third-quarter earnings.

Profit was 62 cents to 63 cents a share in the three months to October, excluding some items, the San Francisco-based company said .

The company plans to report full third-quarter results on November 19th chief executive officer Art Peck has been working to revive sales at the struggling Banana Republic and Gap chains.

He’s named new presidents to head the two units, and last month the company announced that Banana Republic’s Marissa Webb, who served as creative director, would step down from her day-to-day roles.

The retailer’s value-focused Old Navy brand, which had been fueling the company’s results, lost president Stefan Larsson last month to Ralph Lauren where he’s now CEO.

Gap and Banana Republic’s woes continued last quarter. Comparable sales fell 12 per cent at Banana Republic and 4 per cent at Gap, the company said on Monday. Old Navy’s sales rose 4 per cent.

- Bloomberg