Gottschalks March Comps Fall 2.4%

Gottschalks' total sales and same store sales for the month of March 2005 decreased 2.4% from the prior year. Total sales for the month decreased to $57.9 million from $59.3 million in March 2004. On a year-to-date basis, total sales and same store sales decreased 1.7 % from the same period of the prior year. Total sales decreased to $100.6 million from $102.4 million for the same period of fiscal 2004.

Jim Famalette, president and chief executive officer, of Gottschalks said, “Our sales for the month were in line with our expectations. In March 2004, we held our highly successful 100th year anniversary marketing promotions, which generated an 11.2% increase in comparable store sales. While our sales were down this year, during March junior and children's apparel, accessories, cosmetics and housewares all performed well. Based on results to date this fiscal year, we currently anticipate first quarter comparable store sales will be down approximately 1% from fiscal 2004. We remain on track with our new store opening plans for the year and currently expect to open our new Albany, Oregon store on April 15th.”

     Sales results are summarized as follows:

                                                                   Same Store
                                April 2,     April 3,    Total %     Sales %
                                  2005         2004     Decrease    Decrease
                                     (in 000's)

     Sales, 5 Weeks Ended       $57,883      $59,317       2.4%        2.4%
     Sales, 9 Weeks Ended      $100,633     $102,388       1.7%        1.7%