Gottschalks February Comp Store Sales Rise 2.7%

Gottschalks Inc. announced that same store sales for the month of February 2005 increased 2.7% compared to the prior year. Total sales for the month increased 3.5% to $44.3 Million from $42.8 Million in February 2005.

Jim Famalette, president and chief executive officer of Gottschalks, said, “The sales we generated in February have begun fiscal 2006 on a positive note. Our best performing merchandise categories for the month were shoes, women's sportswear, special sizes and juniors. At the close of the month our comp store inventory was down slightly by 0.3% from the same period last year. Inventory management and improving our turns remains a focus for us in 2006.”

Sales results are summarized as follows:

                                                                    Same Store
                           February 25,   February 26,    Total %      Sales %
                              2006           2005        Increase     Increase
                                   (in 000's)
    Sales, 4 Weeks Ended    $44,290        $42,800         3.5%         2.7%

Gottschalks also announced today that it has finalized an agreement for the closure and sale of its Silverdale store near Seattle, Washington at the end of April. The Company does not anticipate any material impact associated with the sale or closure of this store. The Company continues to evaluate each of its store locations based on individual performance in an effort to increase store contribution.