Gap Sales Continue To Slump Over Holidays

SAN FRANCISCO (CBS / AP) -- Gap's slump continued through the holiday season.

The San Francisco-based retailer, which operates stores under its own brand as well as Banana Republic and Old Navy, said Thursday that a key sales measure fell 5 percent for the five-week period ended Jan. 2.

The decline was worse than the 3.5 percent drop analysts expected, on average.

By division, a key revenue measure at Gap fell 2 percent, while Banana Republic posted a 9 percent drop. Old Navy, until recently a bright spot, saw sales fall 7 percent. The metric is based on revenue at stores opened at least a year.

The company's total revenue dropped 4 percent to $2.01 billion for the five-week period.

The results underscore the continued challenges that CEO Art Peck confronts in turning around the business.

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