Apparel giant Gap Inc has reported sales decreases for the five weeks ended 1 October because of continued traffic and product performance problems in all its brand segments.

Gap said net sales fell 3 per cent to $1.41 billion in September compared with sales of $1.45bn last September, while same-store sales dropped 6 per cent compared with a 3 per cent slip in 2004.

By division, Gap North America same-store sales fell 3 per cent compared with a 2 per cent dip last year, Gap International same-store sales fell 13 per cent compared with a ten per cent slump last year, Banana Republic North America same-store sales dropped 7 per cent compared with a 6 per cent increase last year, and Old Navy North America same-store sales decreased 7 per cent compared with a 6 per cent drop last year.

Sabrina Simmons, senior vice president - treasury and investor relations, said:  "Due to the significant miss in unit sales, merchandise margins through September are trending substantially below last year and we expect increased margin pressure in
October as we work to clear product."

The company said net sales fell 1 per cent to $9.9bn for the year so far compared with net sales of $10.1bn last year. Same-store sales for the year so far fell 5 per cent compared with a 2 per cent drop last year.