Gottschalks to Close its Northgate store in Seattle
16 Sep '06
2 min read
Gottschalks Inc announced that it will be closing its Northgate store in Seattle, Washington. The store is the Company's last remaining location in the Seattle metro-area and is expected to close at the end of the month.
The costs associated with the closing are estimated to be approximately $370,000 on an after-tax basis, or $0.03 per diluted share.
The closing costs, as compared to the Company's previous store closings, which had minimal associated costs, include charges related to the write-off of store assets, satisfaction of rental requirements and severance costs.
The store closing is expected to be slightly accretive to earnings per share in fiscal 2007.
Jim Famalette, President and Chief Executive Officer of Gottschalks, said, "We are continuously evaluating our store base as we make progress on our store initiatives and part of that process includes monitoring underperforming stores."
"The closing of our Northgate location will streamline our store base and ultimately improve the overall health of our business going forward, allowing us to focus on our growth opportunities."
The Company continues to anticipate a one to two percent increase in comp store sales for the full fiscal year. The Company's net income guidance remains unchanged except for the effect of the charges related to the Northgate store closing.
As such, the Company updated its full year net income guidance to $4.9 to $5.3 million, as compared to its previous range of $5.2 to $5.6 million, to properly reflect the store closing charges.
marketing@alchempro.com
