Gap, the US casualwear giant, said like-for-likes at its international stores fell 1% in the five weeks to January 2, compared with a 5% drop over the same period last year.
However, like-for-likes rose 2% at its domestic stores, compared with a fall of 14% last year.
Gap’s net sales rose 5% to just over $2bn (£1.25bn) and margins were ahead of last year.
Old Navy was Gap’s best performing domestic store chain with comparable sales up 7%, while the eponymous chain reported a 1% rise. Gap’s Banana Republic fascia reported a 3% drop on a like-for-like basis.
Gap chief financial officer Sabrina Simmons said: “We are pleased that our planned promotions and holiday assortments allowed us to compete effectively while delivering merchandise margins significantly above last year.”
For the year to January 2, Gap said sales reached $13.4bn (£8.4bn).