Gottschalks reduces 2Q loss

FRESNO, Calif. Gottschalks reported a net loss for the second quarter of $4.4 million, or 33 cents per diluted share, compared to net loss of $4.8 million or 35 cents per diluted share, for the second quarter of fiscal 2007.

As previously reported, for the second quarter same-store sales decreased 7.3% and total sales decreased 7.8% to $133.7 million from $145 million for the second fiscal quarter last year.

Jim Famalette, chairman and ceo of Gottschalks, stated, "We are pleased that we were able to reduce our net loss for the second quarter, despite persistent challenges in the macro environment. Although we experienced pressure on our sales, we remain encouraged by our ability to consistently increase our credit card sales penetration and grow our credit card revenue compared to last year. In addition, we continue to prudently manage those areas of our business within our control. We ended the quarter with retail inventory levels down 9.7%, while at the same time increasing our inventory turn in the period. During the quarter, we also reduced our SG&A expenditures by $3.9 million as we continue to carefully control our costs."