Gottschalks same store sales for the month of May 2005 increased 4.2% from the prior year. Total sales for the month increased 3.7% to $47.4 million from $45.7 million in May 2004. On a year-to-date basis, same store sales increased 0.6% from the same period of fiscal 2004, and total sales increased 0.7% to $191.5 million compared to $190.2 million for the same period of fiscal 2004. For the month and year-to-date periods Gottschalks operated the same number of stores compared to the same periods in fiscal 2004.

Jim Famalette, president and chief executive officer of Gottschalks, said, “We are very pleased with our solid comparable store sales increase for May. All of our apparel categories performed well during the month. Specifically, our best performing areas were better sportswear, special sizes, shoes and juniors. Additionally, we experienced strong sales of furniture and mattresses within our home furnishings department. We also continue to make steady progress on improving our inventory management and ended May with 3.5% less inventory than the same period last year. Through a combination of improving sales trends and our consistent implementation of operational and financial initiatives we remain on track to achieve our objectives for the year.”


  Sales results are summarized as follows:


                                                               Same Store
                            May 28     May 29,      Total %      Sales %
                             2005        2004      Increase     Increase
                                (in 000's)
  Sales, 4 Weeks Ended     $47,360     $45,652        3.7%         4.2%

  Sales, 17 Weeks Ended   $191,464    $190,185        0.7%         0.6%