Updated from 9:34 a.m. EDT
turnaround suffered in June as the retailer said same-store sales fell 2%.
Overall sales in the five-week period ended July 3 were flat from a year ago.
The decline in sales at stores open more than a year compares to a 10% gain in the year-ago period. Analysts were expecting a 3.7% increase, according to
Shares fell 65 cents, or 2.8%, to $22.83. Their 52-week high is $25.72.
The June slump was most pronounced at the company's international operations where sales fell 11%. Old Navy sales also fell, down 2% -- as did Gap USA's.
"Although overall June sales and margins were below our beginning of month expectations, we remain confident in our product and merchandising strategies," the company said in a statement.
Gap has seen something of a reversal of fortune under CEO Paul Pressler, who's made sweeping management changes since taking the helm almost two years ago.
Year to date, net sales for the 22 weeks ended July 3 rose 6% from a year ago to $6.4 billion. Gap Inc. operated 3,015 stores compared to 3,099 in the year-ago period.
The San Francisco-based company will announce second-quarter earnings Aug. 19.