Gap sales show 17 per cent slide in August

Clothing chain Gap said today sales at stores open at least a year fell 17 per cent in August from a year earlier and warned …

Clothing chain Gap said today sales at stores open at least a year fell 17 per cent in August from a year earlier and warned it is unlikely to make its third-quarter sales target.

Gap, the largest clothing store chain in the US, had forecast a third-quarter same-store sales decline in the mid-single digits on a percentage basis.

Wall Street analysts had expected Gap's August same-store sales to decline about 10-12 per cent.

Gap - which operates Gap, Old Navy and Banana Republic stores - said its total sales were flat with a year-earlier at $1.1 billion for the month ended September 1st.

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August results fell well below our expectations from a competition and margin perspective, Gap chief financial officer Ms Heidi Kunz said in a statement.