Comps Decline Again at Gap

Same-store sales rise at its Banana Republic chain.
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Gap

(GPS) - Get Report

reported another monthly same-store sales decline Thursday, but the retailer saw improved margins and positive comps from its Banana Republic chain.

For the five weeks ended Sept. 30, Gap's same-store sales fell 3%. Total sales rose to $1.46 billion from $1.41 billion.

Same-store sales fell 5% at its namesake chain in the U.S. and 3% at Old Navy's domestic stores, but they rose 3% at Banana Republic.

"We're encouraged with our progress at all three core brands," said Sabrina Simmons, senior vice president, treasury and investor relations at Gap. "Not only are comparable store sales results improved vs. last month, but our overall merchandise margins are above last year as well."

All of Gap's chains have struggled with declining sales over the past year, and the retailer has had to step up promotions to drive sales. The company has promised a turnaround in the second half, but so far that improvement has been elusive.

The company's year-to-date same-store sales have fallen 7%, while total sales are down 2% to $9.77 billion.