US-based apparel and accessories retailer Gap Inc. has reported lower sales for fiscal 2006, ended February 3. Net sales for the 53 weeks slipped to $15.9 billion from $16 billion for the 52 weeks ended January 28, 2006. Comparable store sales decreased 7%, compared with a decrease of 5% in the prior year.

Commenting on the results, Bob Fisher, interim president and CEO, said, “We were not satisfied with our 2006 results and are taking action.” He added, “In 2007, we are focusing on three priorities: fixing our core business by creating the right product and outstanding store experiences; retaining and developing the best talent in the industry; and examining our organisational structure to ensure that we enable our brands to make decisions and effect change more efficiently.”

Since January this year, the company has already announced a change in the CEO position. Mr Fisher, the company’s current non-employee chairman of the board, has stepped in to serve as interim president and chief executive officer until the company appoints a permanent CEO. In addition, the company has named Marka Hansen, former president of Banana Republic, as president of Gap Brand and Michael Cape as executive vice president of marketing for Old Navy. The company has also decided to close its distribution facility in Hebron, Kentucky and its 19 Forth & Towne stores.