Gottschalks Inc. announced January 2003 same store sales increased 2.0% from the prior year. Total sales for the month were $35.5 million, a 0.4% increase from $35.4 million in January 2002. The Company operated three fewer stores this year compared to January 2002.
Fourth quarter total sales decreased 3.4% to $232.9 million from $241.1 million for the same period last year. Same store sales for the quarter decreased 1.8%. The Company operated three fewer stores in the fourth quarter this year compared to the fourth quarter of fiscal 2002.
For the 52-week fiscal year, total sales decreased 2.7% to $691.4 million this year compared to $710.7 million last year. Same store sales for the full 2002 fiscal year were 0.8% lower than fiscal 2001. The total sales decrease is primarily attributable to the closure of six stores in fiscal 2001 and two additional store closures in July of 2002.
Jim Famalette, president and chief executive officer of Gottschalks, stated, “January sales showed a slight improvement from the recent trend. Sales generated by gift card redemptions and seasonal clearances were both important factors during the month. Our best merchandise areas for the month were intimate apparel, women’s sportswear and women’s accessories. In the home division we once again had a very strong sales increase in the furniture and mattress area. At the end of the fiscal year our merchandise inventory level was 1% below last year-end.”
“As part of our recently announced 5-Point Re-Positioning Plan, the Company closed two stores in the last week of January. Two more stores will be closed during February, and we expect an additional two stores will close by the end of March. The closure of these underperforming stores, as well as the other strategic and financial initiatives we are implementing, will increase our available capital and improve our operational flexibility and efficiencies. Additionally, we expect these initiatives will enable us to focus additional efforts on improving quality and service at our stores, as well as enable us to be more productive with our merchandising efforts.”
