Gap Drops After March Same-store Sales At Namesake Brand Disappoint

Gap Inc. shares dropped 1.7% in after-hours trading Thursday after the company's namesake brand reported a bigger-than-expected decline in March same-store sales. Gap brand's global same-store sales dropped 7%. Analysts surveyed by Retail Metrics were expecting a decline of 3.5%, its 11th straight drop. Banana Republic sales fell 3%, versus estimate of a 0.4% increase. Gap's discount Old Navy unit continues to be a bright spot, with sales surging 14%, beating the 4.7% Retail Metrics consensus estimate. As a result, total company comparable sales in March rose 2%, beating the 0.5% consensus estimate.