Gottschalks 3Q loss widens, blames economy

FRESNO, Calif. Gottschalks today reported a net loss of $4.1 million for the third quarter, or 30 cents per diluted share, compared to net loss of $2.7 million or 20 cents per diluted share, for the third quarter of fiscal 2006.

For the first nine months of fiscal 2007, net loss was $13.6 million, or 99 cents per diluted share, compared to a net loss of $6.2 million or 46 cents per diluted share in the first nine months of fiscal 2006.

As previously reported, same-store sales decreased 5.1% for the third quarter of 2007. Total sales decreased by 7.7% to $137.4 million from $148.8 million for the third fiscal quarter last year. Year-to-date same-store sales decreased 3.4%. Total sales for the nine months ended Nov. 3 decreased 4.9% to $424.1 million compared to $445.7 million in the same period in fiscal 2006. 

Jim Famalette, chairman and ceo of Gottschalks, stated, "Both our top and bottom line results for the third quarter were impacted by the difficult retail environment. While we have experienced positive sales trends in our Pacific Northwest stores, this performance has been more than offset by challenges in many of our California stores. The issues in the home mortgage industry appear to be impacting the California consumer."

Famalette added that the company expects a difficult holiday season due to a weak economic environment in California. Fourth quarter earnings are expected to be in the range of 40 cents to 50 cents per diluted share.