Gottschalks August Comps Up 1.0%

Gottschalks Inc. announced that same store sales for the month of August 2003 increased by 1.0% from the prior year. Total sales for the month decreased by 1.6% to $47.2 million from $48.0 million in August 2002. During the month the Company operated seven fewer stores than in the same period of 2002.

Jim Famalette, president and chief executive officer of Gottschalks said, “Our comparable store sales increase for the month of August was in line with our expectations. All of our traditional back-to-school merchandise categories performed strongly during the month, including juniors, young men's and children's. In addition, our cosmetics and housewares divisions turned in solid sales gains. We remain pleased with the continued progress we have made to date this year in the execution of our 5-Point Strategic Plan. Overall for the third quarter of 2003, we continue to anticipate comparable store sales will be even with the prior year.”

Sales results are summarized as follows:

                                                               Same Store
                 August 30,  August 31,         Total %          Sales %
                    2003        2002   Increase/(Decrease) Increase/(Decrease)
                      (in 000's)
     Sales, 4
      Weeks Ended   $47,249    $48,019        (1.6%)              1.0%
     Sales, 30
      Weeks Ended  $339,840   $353,447        (3.8%)             (1.4%)