The company saw its sales decline during the recession but it appears to have helped its Old Navy chain, as has a redesign, a renewed focus on value and a new marketing campaign. The company's Old Navy chain experienced a 10% jump in same-store sales while its Gap and Banana Republic chains went in the opposite direction, producing same-store sales declines of 7% and 6%, respectively. In the same year-earlier period, same-store sales fell for all three chains, led by an 18% decline in same-store sales at Old Navy and an 11% decline at Banana Republic; Gap's decline matched the year-earlier period.

Including all stores, international net sales grew 2.4% while it fell in the US. Net sales at Old Navy North America grew 0.83%, fell 4.4% for Banana Republic North America and fell 7.75% for Gap North America. Sales for Gap Inc. Direct, its Internet sales division, grew by 4.9%.

Year-to-date, the the company has opened 36 stores, weighted toward international markets and outlet stores, and closed 42 stores, weighted towards the Gap brand. The company says it remains on track to open 50 stores and close 100 this year. On the last day of the quarter, the Old Navy chain launched a new design at 50 of its stores.