Old Navy sales were a disaster in December

Old Navy sales plunge

Gap sales are down, Banana Republic sales are down, and now the company is reporting that its Old Navy stores sales have taken a huge hit.

Same-store sales for Gap in December fell by 5% last month while Old Navy’s sales fell 7%.

That news arrives after Gap said its Banana Republic stores experienced a 9% decline during the same period.

Overall sales at all combined Gap stores were down 2%, which appears to show some stabilization in its recent declines.

The declines at Old Navy are especially troubling since they target the discount clothing market.

Shares at Gap were down 40% last year, mainly because of troubles at its namesake brand and Banana Republic stores.

Old Navy sales appeared to be remaining strong throughout most of 2015, so the sudden drop is troubling for the retailer who is attempting to keep up with fast-fashion retailers such as Zara and H&M.

Gap hasn’t given any insight into the sudden drop. Executive Jack Calandra said in a brief note for shareholders that “traffic continued to be challenging in December, and was especially disappointing at Old Navy.”

Other retailers, including Macy’s, have blamed warm weather for low sales. Old Navy hasn’t blamed unusual winter conditions, at least not yet.

CFO Sabrina Simmons said in a press release that the company is looking forward “to delivering new Spring collections across our brands.”

Gap’s shares were actually starting to trade higher throughout the week but fell by 7% in premarket trading.

A consensus of fashion experts appear to agree that Gap needs to deliver a stronger clothing line that can compete with fast fashion retailers if it hopes to gain back some of its market share in 2016.

Written by Tammy Johnson

Tammy Johnson

Tammy Johnson is the Retail Editor at BusinessPundit. She focuses on Fortune 500 retail company's and disruptive brick-and-mortar and e-commerce companies that are changing the retail landscape.