Gap sees surprise slump in June sales
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.
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.