Gottschalks Inc.'s same store sales tumbled 13.8% for December. Total sales for the month decreased 15.2% to $112.8 million compared to $133.1 million a year ago.
On a year-to-date basis, same store sales decreased 5.1% from the comparable period of fiscal 2006. Total sales decreased 6.6% to $598.5 million from $640.4 million. 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 the Fresno, CA, department store chain, said, “Sales in December were below our expectations as we experienced a very difficult retail environment throughout the month, particularly in our California locations. Additionally, our results were further dampened by storms that hit much of California this past weekend, which marked the close of the period. These external factors heavily impacted our sales performance, and contributed to a more promotional environment. Recognizing the macroeconomic challenges, we carefully managed our inventory throughout the holiday season and ended the month with comparable inventory 3.5% below December of the prior year. Importantly, we continue to take a conservative approach to managing our business. As a result, we closed out the month with our borrowing availability equal to that of the end of December 2006.”
Famalette added, “As a result of our December sales results and the current challenging retail environment, we now expect our fourth quarter results to be below our previous guidance.”
Sales results are summarized as follows:
Same Store
January 5, December 30, Total % Sales %
2008 2006 Change Change
(in 000's)
Sales, 5 Weeks Ended $112,791 $133,064 (15.2%) (13.8%)
Sales, 48 Weeks Ended $598,481 $640,413 (6.6%) (5.1%)
Gottschalks operates 59 department stores and 4 specialty apparel stores in six western states, including California (39), Washington (7), Alaska (5), Oregon (4), Nevada (2) and Idaho (2).
