Clothing giant Gap Inc (NYSE:GPS) saw shares tumble over 11% as it warned on waning sales in the first quarter.
Sales for last month (April) declined to $1.12bn from $1.21bn in the same month of 2015, while first-quarter sales fell to $3.44bn from $3.66bn, the year before.
"Our industry is evolving and we must transform at a faster pace, while focusing our energy on what matters most to our customers,” said Art Peck, chief executive officer.
We are committed to better positioning the business to recapture market share in North America and to capitalizing on strategic international regions where there is a strong runway for growth.”
The company, whose brands include Banana Republic, expects diluted earnings per share for the first quarter of fiscal year 2016 to be in the range of $0.31 to $0.32.
Its gross margins were pressured as the company entered April with more inventory than planned as a result of weaker than expected traffic, which began in late March 2016 and continued into April.