Gap is down 10% after reporting horrible sales in March

Gap shares fell by as much as 10% in after-hours trading on Thursday after the company reported March sales results that were weaker than expected.

Gap said in a statement that comparable-store sales - at locations open for at least one year - fell 6%, more than the expectation for -5% according to Bloomberg.

Sales at Old Navy stores worldwide fell 6%, and they dropped 14% at Banana Republic.

"While March proved challenging, we remain focused on taking the necessary steps to improve results across the portfolio throughout the year," said Gap CFO Sabrina Simmons.

The company said it sees its gross margin rate under pressure in Q1 due to higher inventory.

Its shares are up 12% year-to-date.