Gottschalks November Comps Inch Up 0.5%

Gottschalks Inc. same store sales for the month of November increased 0.5% from the prior year. Total sales for the month increased 1.8% to $62.5 million from $61.4 million in November 2004. On a year-to-date basis, same store sales increased 0.6% from the comparable period of fiscal 2004. Total sales on a year-to-date basis increased 1.6% to $509.6 million compared to $501.6 million in the same period of fiscal 2004.

Jim Famalette, president and chief executive officer of Gottschalks, said, “Same store sales growth for November was below our original expectations, primarily due to softness in the home division excluding furniture and cold wear merchandise not performing as well as we had anticipated. However, our key merchandising areas continued to perform well, with the best areas for the month being better sportswear, special sizes, accessories and shoes. We experienced an increase in sales in our stores the Friday after Thanksgiving, which was successfully driven by our “100 great items campaign.” The weather shifted towards the end of the Thanksgiving weekend to colder temperatures, and we saw an immediate upswing in our stores' performance. We expect positive sales trends in December and a strong finish to the holiday selling season.”

Sales results are summarized as follows:

                                                                  Same Store
                         November 27,  November 27,  Total %        Sales %
                             2005          2004      Increase/     Increase/
                                                     Decrease      Decrease
                               (in 000's)

    Sales,                $  62,496    $  61,417       1.8%          0.5%
    4 Weeks Ended

    Sales,                $ 509,550    $ 501,619       1.6%          0.6%
    44 Weeks Ended