Gap Inc. Reports Sales Slump

San Francisco-based Gap Inc. reports that January 2012 net sales decreased 1 percent to $833 million compared with last year. The company’s comparable sales for the period ended January 28, 2012, were down 4 percent compared with a 3 percent increase for January 2011.

In addition, the company reported that net sales for the fourth quarter of fiscal year 2011, dropped 2 percent to $4.28 billion while comparable sales for the fourth quarter declined 4 percent.

“January was largely clearance-based, and we’re pleased we successfully cleared holiday inventory,” says Glenn Murphy, chairman and ceo, Gap Inc. “As we transition to a new year, our teams are focused on making the necessary steps to improve our business performance in 2012.”

January Comparable Sales Results (includes comparable online sales) were as follows:

• Gap North America: negative 5 percent
• Banana Republic North America: positive 6 percent
• Old Navy North America: negative 6 percent
• International: negative 10 percent

Fourth Quarter Comparable Sales Results:

• Gap North America: negative 3 percent
• Banana Republic North America: flat
• Old Navy North America: negative 6 percent
• International: negative 8 percent