follow us

Gottschalks Ups Income

Gottschalks, Inc. reported net income for the second quarter was up 50 percent, to $300,000 from $200,000 last year.

Same-store sales increased 3.1 percent, while total sales were up 2.6 percent, to $151.6 million from $147.8 million a year ago. During the quarter, Gottschalks incurred costs of $200,000 for pre-opening expenses related to its new store in Fresno and the settlement of a previously disclosed legal proceeding.

Year-to-date, net loss was narrowed $300,000, to $1.7 million from a prior-year net loss of $2 million. Also on a year-to-date basis, same-store sales were up 1.3 percent, while total sales increased 1.2 percent, to $295.7 million from $292.3 million last year.

The company stated that it continues to anticipate 2005 comps increasing 2 percent, and fiscal 2005 earnings in the range of 59 to 65 cents per diluted share.

Jim Famalette, president and CEO, stated, “Our new merchandise strategies implemented in our home division late last year are generating positive signs as we enter the second half of the year. We are continuing to focus on managing our inventory more efficiently and are seeing improved inventory turnover rates as a result. Additionally, the company's debt was further reduced $15.1 million, or 12.1 percent, on a year-over-year basis.

“We are encouraged by our results year-to-date and continue to be optimistic about our initiatives and growth prospects for the second half of fiscal 2005. We successfully opened our River Park lifestyle center store earlier this month and its initial performance has exceeded our expectations.”

Gottschalks Inc.

Qtr. 7/30 (x000) 2005 2004 % change
a. Second quarter results include miscellaneous costs of $438,000 versus $465,000 last year stemming form the settlement of a lawsuit.
b. Six month results include miscellaneous expense of $789,000, compared with $926,000 last year; and a income-tax benefit of $1 million, compared with a prior-year benefit of $1.3 million. Results in the 2004 six-month period include a $20 million loss from discontinued operations.
Sales $151,637 $147,776 2.6
Oper. income (EBIT) 2,108 2,071 1.8
Net income 259a 224a 15.6
Per share (diluted) 0.02 0.02
Average gross margin 35.7% 35.4%
SG&A expenses 32.9% 32.8%
Six months ended 7/30 (x000) 2005 2004 % change
Sales 295,742 292,309 1.2
Oper. income (EBIT) 483 850 -43.2
Net income (1,727) (2,012)
Per share (diluted) (0.13) (0.16)
Average gross margin 34.8% 34.9%
SG&A expenses 33.3% 33.4%

Featured Video

Other Home Furnishings Sites

Casual Living
Furniture Today
Gifts and Decorative Accessories
Home Accents Today
Kids Today
HFN - Home Furnishings News