Gap (GPS) same-store sales fell 7% in July. Wall St. expected a 4.9% drop.

It must be that US shoppers are upset that the company hired a Canadian to be CEO.

Gap North America sales dropped 6% and Old Navy was down 9%. Old Navy needs to be closed.

Gap also said that for the second quarter of fiscal year 2007, the company expects diluted earnings per share on a GAAP basis to be $0.17 to $0.18.

Wall St. must be used to awful news from the company. Shares are up over 4% in the pre-market on retail buying by Canadian investors.

Douglas A. McIntyre