Gap sales fell to £550m ($924m) in July, a 7% drop on the same month a year ago.
Like-for-like sales were down 8% across the fashion group compared to an 11% drop in July last year.
International sales at Gap, which includes its UK operations, fell 4% on a comparable basis, an improvement on the 9% drop for the same period last year.
Gap chief financial officer Sabrina Simmons said: “We delivered July merchandise margins significantly above last year.”
She added: “We’re please with this range of earnings and our consistently healthy merchandise margins.”