Gap saw fourth quarter comparable sales fall 4% at its international stores, which includes its UK shops.
Total international sales fell slightly to $505 million (£355.6m) over the fourth quarter.
Comparable international sales were also down 4% for the full year ended January 31 but total sales rose to $1.7 (£1.19bn) billion versus $1.6bn (£1.12bn) the previous year.
Gap as a whole saw net earnings rise 16% to $967 million (£681.4m) over the year but net sales fell back to $14.5bn (£10.2bn) against $15.8bn (£11.1bn) the previous year.
Gap chairman and chief executive Glenn Murphy said: “Our ability to drive healthy margins and achieve significant cost savings helped us deliver earnings growth of 16% over the course of a very challenging year.”