Gottschalks Inc. same store sales for the month of November 2007 increased 0.4% from the prior year. Total sales for the month were $61.6 million, which is flat with the comparable period in 2006.

On a year-to-date basis, same store sales decreased 2.9% from the comparable period of fiscal 2006. Total sales on a year-to-date basis decreased 4.3% to $485.7 million compared to $507.4 million in the same period of the prior year. The Company operated two fewer stores for the month and year-to-date periods compared to the same periods in fiscal 2006.

Jim Famalette, chairman and chief executive officer of Gottschalks said, “We experienced strong traffic and sales on Black Friday that helped drive our results for the month, but November sales softened following the Thanksgiving weekend. Recent regional trends have continued, as we generated positive sales in the Pacific Northwest while experiencing a more difficult same store comparison for the majority of our California stores. The best performing merchandise categories during the month were electrics, toys, dresses, women's accessories and cosmetics. We have worked diligently to control our inventories during the initial holiday season and finished the month with comp store inventory 4.5% below the same period last year. At the same time, we also maintained a promotional cadence similar to that of last year for November.”

Mr. Famalette added, “During the month we opened a new store in Elk Grove, California and we are very pleased with its initial results, as the store has performed better than our internal plan in its first month.”

    Sales results are summarized as follows:
                                                                    Same Store
                             December 1,   November 25,     Total %    Sales %
                               2007           2006          Change     Change
                                   (in 000's)

Sales, 4 Weeks Ended $61,568 $61,610 (0.07%) 0.4%

Sales, 43 Weeks Ended $485,690 $507,350 (4.3%) (2.9%)