Sales at US fashion giant Gap fell 5 per cent to US$1.14 billion (£639.9 million) in the four weeks to August 30.

Like-for-likes in August fell 8 per cent, versus a 1 per cent decrease in August 2007.

Gap North America recorded a 5 per cent fall during the month, in comparison with a 2 per cent increase last year.

Sales at Banana Republic North America slumped 14 per cent during the month, against a 7 per cent increase the previous year.

Old Navy North America reported a sales fall of 9 per cent, versus a 4 per cent fall last year.

Sales at the international division fell 2 per cent against a 7 per cent decline last year.

Year-to-date sales were down 5 per cent to US$8.02 billion (£4.5 million) for the 30 weeks to August 30. Year-to-date like-for-likes plummeted 10 per cent.

Gap Inc chief financial officer Sabrina Simmons said: “Consistent with our strategy, we are pleased that we delivered merchandise margins above last year.

“Each division remains focused on executing product and store strategies for fall.”