Sales at US casualwear giant Gap dropped 2% on a like-for-like basis for the four weeks to February 2, 2008.
Over the period, net sales at the group fell to $932m (£479m) against $1.19 billion (£600m) the year before. However the account period in 2007 spanned five weeks to February 3 said the company.
Sales at Gap's international arm fell by 5% over January compared to January last year when the division was up by 1%.
Chief financial officer Sabrina Simmons said: "Despite the fact we entered the month with more units than we had planned, our efforts to clear merchandise were successful and total company margins were slightly above last year."
Over the 13 weeks to February 2, 2008 total company net sales were $4.67 billion (£2.4bn) against $4.92bn (£2.5bn) the year before.
International sales improved over the quarter declining only 1% against a 6% drop last year.
Gap operates the Gap, Banana Republic and Old Navy