Gottschalks Inc. total sales for the five-week January period ending February 3, 2007 increased 21.1% to $43.5 million from $35.9 million in four-week January period in the prior year. Excluding the additional week in January 2007, total sales decreased 3.0% to $34.8 million. Same store sales for the comparable four-week period decreased 1.0% from January 2006. Gottschalks' 2006 fiscal year consisted of 53 weeks. Accordingly, the January, fourth quarter and fiscal year sales include an additional week compared to the prior fiscal year periods. The Company operated three fewer stores during the month, quarter and fiscal year periods.
Total sales for the 14-week fiscal quarter increased 3.6% to $238.1 million from $229.9 million for the 13-week fourth quarter of fiscal 2005. Total sales for the fourth quarter excluding the additional week decreased 0.2% to $229.5 million. Same store sales for the comparable 13-week period increased 0.8% from the fourth quarter of fiscal 2005.
Total sales for the 53-week fiscal year 2006 increased 1.0% to $683.9 million from $676.9 million for the 52-week fiscal year 2005. Total sales for fiscal 2006 excluding the additional week decreased 0.3% to $675.2 million. Same store sales for the comparable 52-week fiscal year period increased 0.6% from fiscal 2005.
Jim Famalette, president and chief executive officer of Gottschalks, said, “January was a clearance month for us as we deepened promotions in some soft line categories and, in particular, focused on selling through inventory in our home division as we continue to reposition our merchandise assortments in that category. Our best performing merchandise categories during the month were dresses, accessories, juniors and shoes. We ended the month with comparable inventory at levels essentially even with this time last year.
“Sales overall for the fourth quarter were below our expectations and we and did not achieve our top line or comparable store sales objectives for the year. We continue to revamp our merchandise mix with our focus on more soft fashion merchandise categories. The re-fixturing and upgrades we completed during the year in our accessories, shoes and cosmetics departments have generated strong results and we will continue that process across more stores in the coming year. In addition, we will be instituting more physical changes to increase the square footage of soft lines and reduce the overall space allotted to the home store merchandise throughout the chain in the first half of 2007.”
