Gottschalks Inc announced that same store sales for the month of June 2007 decreased 4.3% from the prior year. Total sales for the month decreased 5.8% to $57.5 million from $61.0 million in June 2006. On a year-to-date basis, same store sales decreased 2.1% from the same period of the prior year.
Total sales for the year-to-date period decreased 3.1% to $245.7 million compared to $253.5 million for the same period of fiscal 2006. The Company operated three fewer stores in the month and four fewer stores for the year-to-date period compared to the same periods of fiscal 2006.
Jim Famalette, president and chief executive officer of Gottschalks said, "Our sales performance in June did not meet our expectations. Our best areas were dresses, shoes, children's and cosmetics, which benefited from a special event during the month.
Despite good results in these categories, we experienced softness in a number of apparel categories as well as in our home store merchandise. We ended the month with comp store inventory 1% below the same period last year. Based on our combined results for May and June, as well as the current retail environment, we now expect to incur a loss for the second quarter and anticipate the full fiscal year earnings will be below those of last year."
As previously announced, Gottschalks has formed a special strategic committee to identify and evaluate various strategic alternatives to maximize shareholder value. The Company does not currently intend to disclose further developments or provide updates on the progress or status of the strategic alternatives review process or of any strategic alternatives under consideration, unless and until the Board of Directors has approved a specific transaction.
Gottschalks is a regional department store chain, currently operating 59 department stores and 4 specialty apparel stores in six western states, including California, Washington, Alaska, Oregon, Nevada and Idaho. Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise.
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