Dive Brief:

• Gap Inc. said Thursday that net sales for the five-week period ending April 2 were $1.43 billion, compared with net sales of $1.53 billion a year ago. 

• March same-store sales dropped 6%, compared to a 2% gain during the same period last year, missing Bloomberg expectations of a 5% decrease. By brand, global March same-store Gap sales declined 3%, Banana Republic sales dropped 14%, and Old Navy fell 6%. 

• Gap says it’s entering April with more inventory than planned, which will impact its Q1 gross margin rate. Gap shares fell by as much as 10% in after-hours trading Thursday on the report.

Dive Insight:

Gap has been struggling to bring out apparel that appeals to shoppers. That has left it particularly vulnerable to the issues facing much of the sector—for example, bloated inventories of winter gear due to unseasonably warm weather.

"While March proved challenging, we remain focused on taking the necessary steps to improve results across the portfolio throughout the year," Gap CFO Sabrina Simmons said in a statement.

Old Navy had been lifting Gap’s fortunes, but has lagged in recent months; the departure of Old Navy president Stefan Larsson for Ralph Lauren seemed to really hurt its momentum. Larsson was credited with revamping the brand’s supply chain to bring in better selling styles more swiftly.

Gap has reshuffled its executive ranks to mixed results. Its high-profile appointment of Rebekka Bay, brought on to help the retailer with its fashion mix, proved short-lived when new Gap Inc. CEO Art Peck let her go last year.

Last summer the company also added design and merchandising veteran Steve Sare, previously at Uniqlo, as president of global merchandising and named Alessandra Brunialti VP of women’s design. Brunialti had been at Banana Republic from 1995 to 2011, and also worked at alice + olivia, Calvin Klein, vince inc., and Nicole Miller in design and product development.