American clothing retailer Gap has announced a further drop in profit as sales slid across its Gap and Banana Republic divisions. However, the fall was not as bad as had originally been predicted, which pushed the company’s share price up.

The group has confirmed that it will close all of its UK Banana Republic stores, maintaining only an online presence.

October’s comparable sales fell 1%, half of what had been predicted by analysts. Additionally the company estimated that the fire which occurred in a building on its New York distribution centre negatively impacted the group’s October 2016 comparable sales by approximately 3%.

The UK Banana Republic stores are anticipated to close by the end of this year.