NEW YORK (TheStreet) -- Retailer Gap (GPS - Get Report) had another month of disappointing sales. This time it blamed this year's late Labor Day holiday. The big holiday weekend, which starts tomorrow, will count toward September's results rather than August, as it has the past three years.

Without benefit of Labor Day, Gap reported an overall 3% drop in August sales from the prior year, with sales at established stores open more than a year down 2%. Old Navy was still the retailer's top performer, with a better-than-expected 6% jump in sales at stores open more than a year.

However, Banana Republic saw an ugly 11% drop in same-store sales. It was a similar picture for Gap's namesake store, with an 8% August decline from a year ago. Analysts had projected a 3.8% rise at Old Navy and declines of 2.3% and 3.4% at the Banana Republic and Gap brands, respectively. Sales at all three brands were weaker compared to a year ago.

Gap has been trying to fight the decline with its restructuring efforts to revamp its namesake brand. Earlier this year, the company announced that it is closing 140 under-performing Gap locations and cutting more than a couple of hundred corporate jobs.

Shares of Gap closed Friday's regular trading session at $32.41, down 1.8%. The stock has plunged more than 23% so far this year. The stock has shed nearly 30% over the past one-year period. The company currently has a market cap of roughly $13.8 billion.


TheStreet Ratings team rates GAP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GAP INC (GPS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: GPS Ratings Report