Updated from 9:14 a.m. EST
found something missing in its holiday season -- strong sales.
The San Francisco-based clothing retailer Thursday said overall sales rose 2% while same-store sales inched 1% higher during the month.
Total sales hit $2.52 billion for the five-week reporting period ended Jan. 3, 2004, while the rise in same-store sales was smaller than the year-ago period.
"Consistent with national mall traffic trends, traffic was weakest in the first three weeks of the month. However, sales performance strengthened in weeks four and five as customers began shopping and spending just before and right after Christmas," the company said.
Gap shares fell $3, or 13%, to $20 on the news.
Of the company's four major divisions, Banana Republic was the best performer, with a 10% sales increase. It was the only unit to report an improved sales pace over the same period last year.
Sales at Old Navy rose 2% compared to a 9% gain last year.
Sales at Gap stores in the U.S. were flat, while the international unit suffered a 3% decline.