Goody's Family Clothing reported total sales of $98.7 million for the fiscal month of August 2005 (the four weeks ended August 27, 2005), an increase of 4.9% from total sales of $94.1 million for the fiscal month of August 2004 (the four weeks ended August 28, 2004). Comparable store sales for August 2005 decreased 0.3% compared with August 2004.

Total sales for the first seven months of fiscal 2005 decreased 1.2% to $683.1 million from $691.6 million for the same period last year. Comparable store sales for the first seven months of fiscal 2005 decreased 6.4% from the same period last year.

“Our sales for the month were driven, in part, by more promotional pricing than in August of last year,” commented Robert M. Goodfriend, Chairman and Chief Executive Officer. “Inventory levels on a per-square-foot basis remain lower at the end of August this year compared with the year-earlier period.”

Goodfriend added, “Hurricane Katrina caused 14 store closures in Alabama, Louisiana, and Mississippi after the August month-end, of which six are still closed. At this time, we cannot predict how long these stores will remain closed. Severe wind, rain, and intermittent power outages affected approximately 40 other stores to varying degrees. Until civil authorities reopen restricted areas and telephone communication is restored, we are unable to assess the full impact of the storm on results of operations or quantify the property damage that may have occurred.”

The Company now expects to open approximately 31 new stores, relocate or remodel nine stores, and close approximately six stores during fiscal 2005. The Company's previous guidance had been that it would open 29 new stores, relocate or remodel ten stores, and close five stores during fiscal 2005.