GAP Australia has reported softer than expected sales in the lead up to Christmas.
Like-for-like sales fell 11% compared to a 6% growth in the same period last year.
The sales performance was attributed to aggressive discounting across the apparel market, which was impacted by the colder start to spring.
GAP Australia also reported the result was hit by a woman's range that did not perform well.
In 2013, OrotonGroup acquired the franchising rights for GAP in Australia and New Zealand.
It took over from Melbourne-based Busby, which did not roll out the number of GAP stores it had first forecast.