Shares in Gap, Inc. tick lower after disappointing May sales

Investing.com - Investing.com -- Shares in Gap Inc (NYSE:GPS) inched down in after-hours trading after the San Francisco-based retailer posted disappointing comparable store sales for the month of May.
Tamped down by inadequate sales in its Gap and Banana Republic stores, Gap reported net sales of $1.25 billion for the month, down slightly from $1.27 billion in May, 2014. The company's net sales last May represented a 1% increase from its monthly sales figures 12 months earlier.
Old Navy, though, reported a 6% increase in comparable store sales on the month, up from a 2% gain last May.
"We're pleased with Old Navy's continued momentum and we remain focused on consistently delivering higher levels of performance across our portfolio,' Gap CFO Sabrina Simmons said in a statement.
In its quarterly earnings report released late last month, Gap reaffirmed its full-year earnings guidance of $2.75 to $2.80 EPS despite experiencing a 3% decline in net sales on the quarter to $3.66 billion. Gap attributed the poor quarter to weak foreign currency translation, which it said led to a negative impact of $90 million.
Old Navy also performed well during the first quarter, reporting an increase of 3% in comparative store sales, up from a gain of 1% during the same period last year.
In addition, Gap announced last month that its Board of Directors authorized a second quarter dividend of 0.23 EPS to shareholders of record at the close of business on July 8.
Shares in Gap in after-hours fell 0.08 or 0.21% to 38.51.