Gap Reports Drop in November Sales

Gap said sales at its established stores fell 8% in November, worse than analysts expected, with declines at all three of its major brands.

Shares of Gap, down 36% over the past year, dropped 2.4% to $25.49 in after-hours trading. Analysts, on average, expected same-store sales to fall 6.3%.

Gap's total sales for the four weeks ended Nov. 28 declined 9% to $1.57 billion from a year ago. On a constant-currency basis, sales tumbled 8%, the company said.

The company said same-store sales in November fell 4% at its namesake chain, 19% at Banana Republic and 9% at Old Navy.

Same-store sales, which Gap defines as stores open for at least a year along with online sales, are a key metric for retailers, stripping out the impact of recently opened or closed stores.

Analysts, on average, expected same-store sales to fall 4.6% at the namesake chain, 10.9% at Banana Republic and 7.2% at Old Navy.

Gap has been trying to revamp its namesake brand. The company brought on new leadership, including former Banana Republic veteran Wendi Goldman, who had led the Pink line at Victoria's Secret. In June, the company launched cost-cutting moves including the elimination of 250 corporate jobs and closing 175 North America Gap stores.

Last month, Gap lowered its full-year earnings guidance.

Write to Josh Beckerman at