By early afternoon, shares had dipped 2% to $38.50.
The apparel retailer said overall March same-store sales fell 6% year over year, a slight quarter-to-quarter increase from February's 7% drop.
By brand, Gap Global sales dropped 7%, Banana Republic fell 4%, and Old Navy Global dove 7%.
"While March performance has been challenging, we remain confident in the opportunities ahead," said CEO Glenn Murphy in a statement.
The company noted declining same-store sales were partially due to a later-than-usual Easter holiday this year compared to last (Easter falls in April in 2014, March in 2013).
"Given this shift in peak spring selling weeks, the company expected March to be negatively impacted," Gap said.
Management reaffirmed previous full-year earnings guidance of $2.90 to $2.95 per share.
TheStreet Ratings team rates GAP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAP INC (GPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."