Gap Inc.

Gap Inc. (San Francisco) reported a 3 percent decrease in same-store sales for the four weeks ending Feb. 26, 2005. Total net sales were flat.

By division, Gap North America’s same-store sales were down 2 percent; Banana Republic North America was down 6 percent; Old Navy North America was down 1 percent; and international same-store sales were down 8 percent.

“We were pleased with improved year-over-year total company merchandise margins, as we continued to sell through spring merchandise in February,” said Sabrina Simmons, senior vp, treasury and investor relations.

Per the company’s previous announcement on February 24, starting with fiscal 2005 the company is changing external reporting to reflect Gap United States and Gap Canada together as Gap North America. This change aligns Gap division to be consistent with how the company reports North American operations at Old Navy and Banana Republic. Starting with fiscal 2005, international reporting includes stores in the United Kingdom, France and Japan.

As of February 26, Gap Inc. was operating 3001 store locations, compared with 3020 a year ago.