Gottschalks same store sales for the month of September 2005 decreased 0.5% from the prior year. Total sales for the month increased 1.7% to $57.7 million from $56.8 million in September 2004. On a year-to-date basis, same store sales increased 0.9% from the comparable period of fiscal 2004. Total sales on a year-to-date basis increased 1.7 % to $403.0 million compared to $396.4 million in the same period of the prior year.

Reflecting the opening of the River Park lifestyle center store in August 2005 and the potential effect on other Fresno stores, the Company's comparable store base for September 2005 and the fiscal year to date period is exclusive of all stores located in Fresno. The Company plans to continue to report same store sales exclusive of Fresno stores through September 2006.

Jim Famalette, president and chief executive officer of Gottschalks, said, “We generated same store sales in September in line with our expectations given the more challenging comparison resulting from our 100th year anniversary event and the strong 6% increase in comps we achieved in September last year. We continue to experience strength in the more fashion forward merchandise categories such as better sportswear, juniors and accessories, which we have focused on over the past year. Our other best performing merchandise areas for the month were special sizes and shoes. We are pleased that our River Park lifestyle center store in Fresno has maintained its solid performance during September, and overall we continue to anticipate achieving same store sales growth of approximately 2% for the full fiscal year in 2005.”


    Sales results are summarized as follows:
                                                              Same Store
                    October 1,     October 2,     Total %        Sales %
                       2005           2004       Increase   Decrease/Increase
                                          (in 000's)

     Sales,
      5 Weeks
      Ended           $57,727       $56,756        1.7%           0.5%

     Sales,
      35 Weeks
      Ended           $403,045      $396,357       1.7%           0.9%

As planned, Gottschalks opened a furniture and home store in Pocatello, Idaho during the month and also closed its Factoria Mall store in Seattle, Washington at the end of September. The Company does not anticipate any material costs associated with the closure of its Factoria Mall store. The Company continues to evaluate each of its store locations based on individual performance in an effort to increase store contribution.