Gottschalks Inc. announced that July 2004 same store sales decreased 0.4% from the prior year. Total sales decreased 1.5% to $41.4 million from $42.0 million in July 2003. During the month the Company operated three fewer stores than in the same period of 2003.
For the thirteen weeks ended July 31, 2004, same store sales were 1.3% lower than the prior year, and total sales decreased 2.8% to $147.8 million from $152.0 million in same period of 2003. For the year-to-date period, same store sales increased 1.6%, while total sales were $292.3 million, essentially even with $292.6 million for the same period last year. For the quarter the Company operated four fewer stores compared to the same period of the prior year, and year-to-date operated seven fewer stores compared to the same period in fiscal 2003.
“Comparable store sales for the month of July as well as the second quarter were slightly below our expectations,” said Mr. Jim Famalette, president and chief executive officer of Gottschalks. “While we experienced good performance in the accessories, cosmetics, and women's apparel merchandise categories, our home store sales for the month and quarter were lower than anticipated. We are pleased to report that as a result of our focus on inventory management, total inventory on hand is lower by $10 million, or 2.8% on a comparable store basis versus this time last year. We have significantly reduced the amount of clearance merchandise on hand relative to a year ago, which we believe may have contributed to the essentially flat sales results for the month.”
Mr. Famalette added, “We continue to expect comp store growth in the range of 1% to 2% for the total year, and we anticipate earnings for the year to be in the range of $0.38 to $0.40 per diluted share consistent with our previous guidance.”
