Gap sees surprise slump in June sales

Dive Brief:

  • San Francisco-based Gap Inc. reported Thursday that sales online and at stores open more than a year fell 2% in June, failing to realize an expected .8% gain.

  • Sales at Gap and Banana Republic stores each fell 7%, while sales at the company’s lower-priced Old Navy stores saw a 7% rise. But sales at all those stores were poorer -- Gap, 5% rise; Banana Republic, 1% fall; Old Navy 13% rise -- than a year ago.

  • Old Navy’s healthier performance was attributed to its lower prices and its selection of clothing in the trendy activewear space.

Dive Insight:

Gap Inc. is struggling to come back from the tough winter slump that has buffeted its sales. The company says investments in technology and a unilateral minimum wage hike will boost its customers’ experience and improve its fortunes. 

Recommended Reading

Bloomberg: Gap Falls After Unexpected Drop in June Same-Store Sales