The company's comparable store sales for March 2008 decreased 18 percent compared with a 6 percent increase for March 2007.

Comparable international store sales, including the UK were negative 3 percent versus negative 5 percent last year. javascript:SetCmd(cmdSend); "Overall March traffic and sales results across our brands were disappointing, particularly at Old Navy," said Sabrina Simmons, chief financial officer of Gap Inc. "With our continued inventory discipline across the brands, we delivered merchandise margins above last year. As we execute our strategy of delivering healthier earnings through improved margins and cost management, we remain comfortable with our previously communicated 2008 annual earnings per share guidance of $1.20-$1.27."

Year-to-date net sales of $2.28 billion for the nine weeks ended April 5, 2008, decreased 7 percent compared with net sales of $2.46 billion for the nine weeks ended April 7, 2007. The company's year-to-date comparable store sales decreased 13 percent compared with a 2 percent increjavascript:SetCmd(cmdSend);ase in the prior year.

Gap will report April sales on May 8, 2008.