Gottschalks Reports August 2005 Comparable Store Sales Increase 0.4% from the Prior Year

Gottschalks Reports August 2005 Comparable Store Sales Increase 0.4% from the Prior Year

FRESNO, Calif., Sept. 1 /PRNewswire-FirstCall/ -- Gottschalks Inc. (NYSE:GOT) today announced that same store sales for the month of August 2005 increased 0.4% from the prior year. Total sales for the month increased 4.8% to $49.6 million compared to total sales of $47.3 million in August 2004. On a year-to-date basis, same store sales increased 1.2% from the comparable period of 2004. Total sales on a year-to-date basis were $345.3 million, up 1.7% from $339.6 million for the same period last year.

Jim Famalette, president and chief executive officer of Gottschalks said, "We achieved same store sales growth for August in line with our expectations. In addition, the opening of our new River Park lifestyle center store on August 11th helped drive our 4.8% increase in total sales. As we have previously reported, initial results from the River Park store are better than we had anticipated. The new store had some impact on our three existing Fresno area stores in the first two weeks, but we are now seeing a more normal pattern return. Overall, our back to school business was good in juniors and young mens and slightly lower than expected in childrens. We continued to experience very solid performances in juniors, better sportswear, special sizes and shoes throughout the month. In our home store division, our furniture department also had a very strong sales performance in August. We continue to focus on improved inventory turnover and we ended the month with 3% less inventory than last year in comparable stores."

Sales results are summarized as follows:
Same Store
August 27, August 28, Total % Sales %
2005 2004 Increase Increase
(in 000's)
Sales, 4 Weeks Ended $ 49,577 $ 47,292 4.8% 0.4%

Sales, 30 Weeks Ended $ 345,318 $ 339,601 1.7% 1.2%

About Gottschalks

Gottschalks is a regional department store chain, currently operating 64 department stores and 6 specialty apparel stores in six western states, including California (39), Washington (12), Alaska (6), Oregon (3), Nevada (2) and Idaho (2). Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise. Gottschalks offers corporate information and selected merchandise on its website located at http://www.gottschalks.com/.

Business Risks and Forward Looking Statements

This release contains forward-looking statements (within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. In some instances, such statements may be identified by the use of forward-looking terminology such as "may," "will," "expects," "believes," "intends," "projects," "forecasts," "plans," "estimates," "anticipates," "continues," "targets," or similar terms, variations of such terms or the negative of such terms. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the Company's ability to meet debt obligations and adhere to the restrictions and covenants imposed under its various debt agreements; the timely receipt of merchandise and the Company's ability to obtain adequate trade credit from its key factors and vendors; risks arising from general economic and market conditions (including uncertainties arising from acts of terrorism or war); the ability to improve the profitability and cash flows of the stores acquired from Lamonts Apparel, Inc., or to sell, sublease or close underperforming stores; the ability to modify operations in order to minimize the adverse impact of rising costs, including but not limited to health care, workers' compensation, property and casualty insurance and utilities costs; the effects of seasonality and weather conditions, changing consumer trends and preferences, competition, consumer credit, the Company's dependence on its key personnel and general labor conditions, all of which are described in more detail in Gottschalks' Annual Report on Form 10-K and other reports filed by Gottschalks with the Securities and Exchange Commission. Gottschalks does not presently intend to update these statements and undertakes no duty to any person to effect any such update under any circumstances.

Source: Gottschalks Inc.

CONTACT: Greg Ambro, Chief Financial Officer of Gottschalks Inc.,
+1-559-434-4800, or Leigh Parrish, +1-212-850-5651, or Rachel Albert,
+1-212-850-5706, both of Financial Dynamics for Gottschalks Inc.

Web site: http://www.gottschalks.com/

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