GPS Gap Inc

By Josh Beckerman 

Gap Inc. said it saw strong response last month to its fall clothes at the Old Navy chain, but that its namesake brand again posted lower comparable sales.

In all, Gap's total same-store sales fell 3% in September. Analysts polled by Thomson Reuters had projected a 2.9% decline in total comparable sales.

Total sales fell 2% to $1.43 billion.

Gap said a late-August fire at its Fishkill, N.Y., distribution center hurt its same-store sales by about 3 percentage points in September. The fire is expected to hurt comparable sales by a similar amount in October.

The fire destroyed about 12 million units, the majority of which was for the Gap brand, weighted toward Gap online, the company said in a recorded message Thursday.

Comparable sales rose 4% in September at Old Navy, while declining 10% at Gap global and 9% at Banana Republic.

The company said September margins "actualized significantly higher than previously forecasted," which more than offset the negative effects from lost sales and logistics costs related to the fire.

Shares of Gap rose 5.8% to $24.10 in after-hours trading. Before the results, the stock had fallen 20%.

Like many established retailers, Gap has had to contend with upstarts like H&M and lower foot traffic as more customers favor online shopping.

The company has been trying to turn itself around by shutting some stores, shaking up its management ranks and revamping its merchandise.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

October 06, 2016 18:42 ET (22:42 GMT)

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