American fashion giant Gap said sales in January began to gain momentum, up 5% to $798m (£506m) for the month.

Like-for-like sales across the group also grew 5 % compared to a 23% drop in January 2009.

Gap’s international sales grew 3% on a like-for-like basis with sales at Gap in North America up 2%.

Its Old Navy sales continued to rise up 10% like-for-like compared to a 34% decline for the same month last year and sales at its Banana Republic fascia were ahead 4%.

Gap chief finance officer Sabrina Simmons said: “We’re pleased that we grew comparable sales at all of our brands in January while delivering merchandise margins significantly above last year.”

She added: “This is evidence that our strategy to improve our top line is gaining traction.”