Investing.com -- Shares in Gap Inc (NYSE:GPS) plummeted more than 8% on Thursday in after-hours trading after the San Francisco-based major retailer reported broad same-store sales declines among each of its three segments in March.
During the five-week period that ended on April 2, Gap finished with revenues of $1.43 billion slightly below its sales over the same period a year earlier when the company posted revenues of $1.53 billion. For the month, same-store sales among its namesake brand slumped by 3% over the period one year after declining by 7% in March, 2015. Same-store sales at Gap's struggling Banana Republic division plummeted 14%, following mild 3% declines 12 months ago.
More troubling, Old Navy comparative sales were down 6% on the month one year after gaining 14% for the period. While Gap and Banana Republic have been the company's laggards in recent months, Old Navy has turned in consistently positive results. Overall, Gap's comparative sales fell by 6% for the month versus declines of 2% last March.
"While March proved challenging, we remain focused on taking the necessary steps to improve results across the portfolio throughout the year," said Sabrina Simmons, chief financial officer, Gap Inc.
Gap also noted on Thursday that the company entered April with more inventory than it initially expected in prior forecasts. As a result, the company expects the added inventory will provide significant downside pressure on its gross margin for the first quarter of Fiscal Year 2016.
Last June, Gap announced the closure of 175 North American stores resulting in the loss of thousands of jobs. At the time, the company said it expected to lose approximately $300 million in sales from the closures.
Shares in Gap plunged 2.45 or 8.85% to 25.24 in after-hours trading.