Gottschalks June Comps Inch-Up 0.3%

Gottschalks Inc. same store sales for the month of June 2006 increased 0.3% from the prior year. Total sales for the month increased 0.5% to $61.0 million compared to total sales of $60.8 million in June 2005. On a year-to-date basis, same store sales increased 0.2% from the same period of fiscal 2005, and total sales increased 0.5% to $253.5 million compared to $252.2 million for the same period of fiscal 2005.
Jim Famalette, president and chief executive officer of Gottschalks said, “We experienced good performances from our core merchandise areas during June. The strong results we generated in our best performing areas, including shoes, better sportswear and accessories, helped to offset our home division sales which were below our expectations for the month. At the close of June our inventory in comp stores was even with the comparable period last year.”

Sales results are summarized as follows:

                                                                Same Store
                               July 1,      July 2,    Total %    Sales %
                                2006         2005     Increase   Increase
                                    (in 000's)
    Sales, 5 Weeks Ended       $61,040     $60,757      0.5%       0.3%

    Sales, 22 Weeks Ended     $253,466    $252,221      0.5%       0.2%