US retailer Gap has reported a drop of 13 percent in same-store sales for March. The company said that it expected the first half of this financial year to continue to be tough and same-store sales to be negative. Net sales for the five weeks ended 1 April fell 9 percent to $1.35 billion (£771 million). Same-store sales fell 4 percent in the same period last year. Same-store sales of Gap North America dropped 13 percent, compared a 1 percent slip last year. Meanwhile, Banana Republic North America sales fell 7 percent compared with a 1 percent fall the year before, and Old Navy North America sales fell15 percent compared with 9 percent last year. Gap International sales fell 16 percent compared with a 1 percent rise last year.

"Our March performance reflects the challenges we face to increase the frequency of customer visits to our stores," said Sabrina Simmons, senior vice president, treasury and investor relations. "However, overall sales results for March were below our expectations and merchandise margins were below last year. Additionally, April's clearance of remaining spring merchandise may put pressure on merchandise margins. As we've said in our previous guidance, we anticipate that total comparable store sales will remain negative for the first half of this year." Net sales for the nine weeks ended 1 April fell 8 percent to $2.21 billion, while year-to-date same-store sales dropped 12 percent.