Gottschalks puts quarter in bank
August 30, 2004-- Home Textiles Today,
Putting behind it store-closing costs that dogged the bottom line a year ago, Gottschalks Inc. recorded a second quarter profit of $350,000, up from $25,000 the prior year.
The second quarter has historically run at a loss, and Jim Famalette, president and CEO, said despite a dip in sales, "our bottom line net results were the best for a second quarter in more than 15 years."
Sales in the period slipped 1.3 percent, to $147.8 million from $149.8 million last year. Same-store sales declined 1.3 percent.
Average gross margin thinned 30 basis points, or three-tenths of a percentage point, to 35.4 percent from 35.7 percent a year ago. "Our gross margin was somewhat impacted by lower sales, as we continued to implement a markdown strategy focused on maintaining strong inventory controls."
"However, as part of our effort to improve our merchandise flow, through better planning and allocation, we ended the quarter with nearly 3 percent less inventory on a comparable basis and continued to improve our inventory turn," he added.
Operating costs climbed 60 basis points, or six-tenths of a percentage point, to 32.8 percent of sales from 32.2 percent the preceding year.
|Qtr. 7/31 (x000)||2004||2003||% chg|
|Oper. Income (EBIT)||5,237||6,522||-19.7|
|Per share (diluted)||0.03||0.00||—|
|Average gross margin||35.4%||35.7%||—|
|Six months||2004||2003||% chg|
|Oper. Income (EBIT)||7,301||7,196||1.5|
|Per share (diluted)||(0.14)||(0.31)||—|
|Average gross margin||34.9%||34.8%||—|
|a-Second quarter results include miscellaneous income of $465,000 versus $683,000 last year. The prior-year second quarter includes a $307,000 loss from discontinued operations.|
|b-Six-month results include $927,000 in miscellaneous income versus $1.1 million a year ago; an income-tax benefit of $1.1 million versus $1.9 million a year ago; a $1.7 million loss from continuing operations versus $1.9 million last year; and a $20,000 loss from discontinued operations versus a $731,000 prior-year loss.|