Gottschalks Comps Slip 1.2%

Gottschalks Inc. announced that June 2003 same store sales decreased 1.2% from the prior year. Total sales decreased 4.9% to $59.9 million from $62.9 million in June 2002. During the month the Company operated eight fewer stores than in the same period of 2002.

“Our comparable store sales for June were near our expectations,” said Mr. Jim Famalette, president and chief executive officer of Gottschalks. “During the month we generated solid sales increases in cosmetics, women’s sportswear, men’s sportswear and furniture. In addition, we are pleased to report that our Pacific Northwest stores continued their improved sales trend in June. Also, as part of our plan to take advantage of opportunities to further improve operations in this region and focus efforts on our successful stores, we will be closing an additional store in the Seattle area during July when its lease terminates. We continue to anticipate second quarter same store sales will be even with the same period last year.”

On a year-to-date basis, same store sales decreased 1.9% from the same period of the prior year. Total sales decreased 4.4% to $250.6 million from $262.2 million for the same period of fiscal 2002. On a year-to-date basis the decrease in total sales is partially attributable to the closure of eight stores which were open in the comparable period last year.

Sales results are summarized as follows:

    Same Store
                           July 5,       July 6,       Total %       Sales %
                            2003           2002       Decrease      Decrease
                                 (in 000's)

    Sales, 5 Weeks Ended   $59,856       $62,911       (4.9%)        (1.2%)

    Sales, 22 Weeks Ended $250,566      $262,210       (4.4%)        (1.9%)