Gottschalks Same Store Sales Climb 3.3% in June

Gottschalks same store sales for the month of June 2004 increased 3.3% from the prior year. Total sales for the month increased 1.5% to $60.7 million from $59.9 million in June 2003. On a year-to-date basis, same store sales increased 2.0% from the same period of fiscal 2003, and total sales increased 0.1% to $250.9 million compared to $250.6 million for the same period of fiscal 2003. For the month 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.

Jim Famalette, president and chief executive officer of Gottschalks said, “As we had anticipated, our June comparable store sales performance improved from May due to the calendar shift of the Memorial Day holiday. Our best performing merchandise categories during June were accessories, intimate apparel, juniors, shoes and better sportswear. We are continuing to focus on better inventory management and we ended the month of June with 3% less comparable store inventory.”

  Sales results are summarized as follows:


                                                                  Same Store
                            July 3,      July 5,        Total %      Sales %
                             2004         2003         Increase     Increase
                                  (in 000's)
   Sales, 5 Weeks Ended     $60,722      $59,856         1.5%         3.3%

   Sales, 22 Weeks Ended   $250,907     $250,566         0.1%         2.0%