Gottschalks September Comps Down 1.6%

Gottschalks Inc. same store sales for the month of September 2003 decreased 1.6% from the prior year. Total sales for the month decreased 4.3% to $53.8 million from $56.2 million in September 2002. During the month the Company operated seven fewer stores than in the same period of 2002.

Jim Famalette, president and chief executive officer of Gottschalks, said, “September comparable store sales were lower due to less inventory and sales of clearance merchandise than last year. Juniors, Cosmetics, Accessories and Men's were our strongest performers during the month. We remain on track to achieve flat comparable store sales for the third quarter.”

Sales results are summarized as follows:

                                                                  Same Store

                         October 4,     October 5,     Total %       Sales %

                            2003           2002       Increase/     Increase/

                                (in 000's)            (Decrease)   (Decrease)

    Sales, 5 Weeks Ended   $53,793       $56,197       (4.3%)        (1.6%)
    Sales, 35 Weeks Ended $393,633      $409,644       (3.9%)        (1.4%)