US clothing chain Gap said today sales at its stores open at least a year fell 11 per cent in December, a better-than-expected result.
As a result the company raised its fiscal fourth-quarter earnings forecast, saying its loss excluding charges will be no worse than its third-quarter loss of six cents a share. Gap had warned its fourth-quarter loss would exceed the third-quarter loss.
Last month, Gap said same-store sales - a key gauge of retail performance - slumped 25 per cent, as it continues to battle the weak US economy and a possible over-saturation of its US store base.
The retailer said same-store sales at its Gap stores fell 9 per cent while sales at its Old Navy stores open at least a year fell 14 per cent. Banana Republic same-store sales fell 3 per cent in December 2001.