Apparel retail giant Gap Inc has reported static net sales of $1.04 billion for the four-week period ended 30 July 2005, and a four per cent fall in same-store sales compared to a 5 per cent drop last year.

Decreases were seen within the core Gap chain and the Old Navy chain - 8 per cent and 5 per cent respectively.

Same-store sales within the upmarket Banana Republic division, however, leapt 7 per cent, and international division same-store sales rose 4 per cent.

The company said that the "disappointing" sales figures came after the company was forced to engage in mass promotional activity to clear summer lines.

Gap senior vice president, Sabrina Simmons, said: "July was a transitional month as our brands continued to clear summer merchandise".

Second-quarter same-store sales dropped 3 per cent, compared to static same-store sales last year.