Gottschalks same store sales for the month of December 2004 were even with the prior year. Total sales for the month decreased 0.5% to $125.2 million from $125.8 million in December 2003. For the month the Company operated one less store than the same period of fiscal 2003.
On a year-to-date basis, same store sales increased 0.3% from the comparable period of fiscal 2003. Total sales on a year-to-date basis decreased 0.7% to $626.8 million compared to $631.4 million in the same period of fiscal 2003. For the year-to-date period the Company operated seven fewer stores than the same period of fiscal 2003.
Jim Famalette, president and chief executive officer of Gottschalks, said, “Sales for the month were not as strong as we had expected. The major storms we experienced during the final week of December throughout California and Nevada impacted traffic in many our stores. In addition, we experienced a strong increase in gift card sales this holiday season. During December our gift card sales were up over 12% compared to the previous year and we expect sales to be generated in the weeks ahead as shoppers use their cards. The best performing areas in December were better sportswear, women’s accessories, shoes, cosmetics and housewares.
“Despite lower than anticipated sales, we are pleased to have generated an improvement in gross margin for the month compared to last year as a result of our strategic approach to marketing. In addition, we continued to effectively manage our inventory, and our comparable store inventory at the end of December was 3% below the same period last year.”
Sales results are summarized as follows:
Same Store
January 2, January 3, Total % Sales %
2005 2004 Increase/ Increase/
(in 000's) Decrease Decrease
Sales, 5 Weeks Ended $125,194 $125,771 (0.5%) 0.0%
Sales, 49 Weeks Ended $626,813 $631,365 (0.7%) 0.3%
