US fashion retailer Gap Inc. has reported "disappointing" sales for March. Net sales for the month dropped 1 per cent to $1.48 billion (GBP 86 million) from $1.49 billion the year before.

Sames-store sales fell 1 per cent, compared with an increase of 5 per cent last year. Banana Republic reported a drop in sales of 1 per cent compared to the growth of 25 per cent that it enjoyed last year. Old Navy also experienceda 9 per cent decrease in sales, compared with a 11 per cent rise last year.

Gap's senior vice president, treasury and investor relations, Sabrina Simmons, said that April would be under pressure as well, due to the company's clearing of left over spring goods. The company's net sales for the year so far dropped 1 per cent to $2.40 billion compared with $2.42 billion last year.