Apparel giant Gap said summer product sales were "disappointing" in May, leading to a 6% dip in same-store sales.

Net sales were US$1.16bn compared to $1.17bn last year. Same-store sales fell 8% in May 2005.

By division, Gap North America same-sales fell 5%, Banana Republic North America same-store sales edged up 3%, Old Navy North America same-store sales dropped 8% and Gap International same-store sales plummeted 13%.

"…merchandise margins were significantly below last year", said Sabrina Simmons, senior VP, treasury and investor relations.

"As we continue to move through spring and summer product, we expect that merchandise margins will experience pressure until we transition to fall product in late July."

Year-to-date net sales fell 4% to $4.6bn compared to $4.8bn a year ago, while same-store sales dropped 8% compared with 5% in 2005.

Gap had admitted its turnaround strategy is going slowly. The group has been struggling to pull back shoppers after its casual clothing fell out of favour.

Announcing poor first-quarter results last month, it predicted continued same-store sales declines during the rest of the first half.