Gottschalks posts weak Oct. results

FRESNO, Calif. Gottschalks Thursday reported a 3% decrease in same-store sales for the month of October. Total sales for the month decreased 5.7% to $41.7 million from $44.2 million in October 2006.

For the third fiscal quarter of 2007, the company reported same-store sales decreased 5.1% and total sales decreased 7.7% to $137.4 million, compared to $148.8 million for the third fiscal quarter of 2006. On a year-to-date basis, same-store sales decreased 3.4% from the comparable period of fiscal 2006. Total sales on a year-to-date basis decreased 4.9% to $424.1 million compared to $445.7 million in the same period of the prior year.

According to Jim Famalette, chairman and chief executive officer of Gottschalks, the company experienced weak sales in its home categories, specifically in furniture, mattresses and textiles. He addded that sales in the Northwest were strong, posting positive comparable-store sales growth. 

"As a result of our October sales and the more promotional selling environment, we expect our financial results in the third quarter to be below those of the third quarter of last year," concluded Famalette.