Gap trims down profit forecast as sales slide

Fashion retailer Gap has reported a 5 per cent drop in its July sales, and slashed its profit forecast for the second quarter following a weak summer for US clothing retailers.

Gap reported net sales of US$1 billion (£543.7 million) for the four-week period ended July 31, a 3 per cent drop on the same period ended August 2 last year. Comparable sales for the month fell 5 per cent compared with a 9 per cent increase last year.

'June's soft traffic trends continued into July, making summer clearance results disappointing overall,' said senior vice-president for treasury and investor relations Sabrina Simmons.

Gap founders Doris and Donald Fisher this week gave half their 19 per cent stake in the business to their three sons.