Banana Republic was the only division to report positive like-for-likes - up 6 per cent. Gap North America experienced a 9 per cent slump and Old Navy North America a 7 per cent drop. International sales remained flat against a 14 per cent drop last year.
Gap senior vice-president corporate finance Sabrina Simmons said: 'June was a transitional month as all of our brands made progress clearing through summer merchandise. Our total company merchandise margins were in line with last year.'
Net sales increased 1 per cent to US$6.2 billion (£3.06 billion) for the 22 weeks to July 1, up from US$6.1 billion (£3 billion) the previous year. Like-for-likes for the equivalent period dropped 4 per cent against an 8 per cent slump the previous year.
Gap operates 3,140 stores worldwide, up from 3,080 as of July 1 last year.