Gap Inc. is reporting more bad news, and says its net income fell 23% in the first quarter to $233 million. Sales slipped 1% to $3.3 billion, with comparable sales -- including online sales -- sliding 3%. By brand, Gap North America decreased 3%; Banana Republic 1%; and Old Navy North America 2%. International sales dropped 6%. Based on weaker sales and rising costs, the San Francisco-based company lowered its financial forecasts for the year.
"We are disappointed in our quarterly performance, however remain invigorated by the opportunities ahead," Glenn Murphy, chairman/CEO, says in the company's release. "We're focused on making the necessary adjustments across the business to deliver the kind of sales we should expect from our brands."