Gap reports 7 pct drop for a key sales figure for 4Q

NEW YORK (AP) - Gap Inc. reported slumping sales at all three brands for the crucial fourth-quarter, which covers the holiday season.

The company, which operates Gap, Old Navy and Banana Republic stores, said Monday that a key revenue measure, sales at established stores, fell 7 percent in the November-January period.

The figure fell 3 percent for the Gap brand, 14 percent for Banana Republic and 8 percent at Old Navy, which until a few months ago had been a bright spot.

The latest results underscore the challenges that CEO Art Peck faces as he tried to turn around the business.

Gap also said Monday that it expects adjusted profit for the year to be at the high end of the range it had previously predicted. It now expects $2.41 to $2.42 per share, from its prior forecast of $2.38 to $2.42 per share.

Gap is slated to report full-year results on Feb. 25.

Shares of the company rose 2.5 percent in after-hours trading, to $24.60, after the updated forecast. Shares are down 41 percent for the past 12 months and closed Monday at $23.99.