Comps Climb 11.2% for Gottschalks in March

Gottschalks announced that same store sales for the month of March 2004 increased 11.2% from the prior year. Total sales for the month increased 9.3% to $59.3 million from $54.3 million in March 2003. On a year-to-date basis, same store sales increased 7.3 % from the same period of the prior year. Total sales increased 4.9% to $102.4 million from $97.6 million for the same period of fiscal 2002. For the month and year-to-date periods, the Company operated five fewer stores compared to the same periods in fiscal 2003.

Jim Famalette, president and chief executive officer of Gottschalks said, “We experienced strong sales trends across all regions during March and exceeded our comparable store sales growth expectations. We benefited from good weather as well as the launch of our marketing campaign to commemorate Gottschalks 100th Year Anniversary. Our best performing merchandise categories for the month were women's sportswear, juniors, intimate apparel and shoes. As planned, we ended the month with comparable store inventory down 7% from last year.”

Sales results are summarized as follows:

                                                                 Same Store
                                                      Total %      Sales %
                          April 3,     April 5,      Increase/   Increase/
                            2004         2003         Decrease    Decrease
                                (in 000's)
    Sales, 5 Weeks
     Ended                 $59,317      $54,278         9.3%        11.2%

    Sales, 9 Weeks
     Ended                $102,388      $97,613         4.9%         7.3%