Gottschalks Reports March 2008 Comparable Store Sales

FRESNO, Calif., April 10 /PRNewswire-FirstCall/ -- Gottschalks Inc. today announced that same store sales for the month of March decreased 15.4% from the prior year. Total sales for the month decreased 16.6% to $49.1 million compared to $58.9 million in the same period of fiscal 2007. On a year-to-date basis, same store sales decreased 12.9% from the same period of the prior year. Total sales for the year-to-date period decreased 14.5% to $86.8 million compared to $101.5 million for the same period of fiscal 2007. The Company operated one less store for the month and the year-to-date period compared to the same periods in fiscal 2007.

Jim Famalette, chairman and chief executive officer of Gottschalks said, "As anticipated, our sales results continue to be negatively impacted by persistent challenges in the macroeconomic environment, as weak housing trends and high gas prices are particularly affecting the western states in which we operate. In addition, we were also comping against our strongest sales month in 2007 and an earlier Easter this year resulted in one less selling day for the month compared to the same period of 2007. However, we continued to prudently manage our inventory levels and ended the month with 6.7% less comparable store inventory than the same period last year. During this challenging time, we remain focused on executing our cost containment program and key strategic initiatives designed to improve our long-term operational and financial performance."

About Gottschalks

Gottschalks is a regional department store chain, currently operating 59 department stores and three specialty apparel stores in six western states, including California (39), Washington (7), Alaska (5), Oregon (4), Nevada (2) and Idaho (2). Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise. Gottschalks offers corporate information and selected merchandise on its website located at http://www.gottschalks.com/.

Business Risks and Forward Looking Statements

This release contains forward-looking statements (within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. In some instances, such statements may be identified by the use of forward-looking terminology such as "may," "will," "expects," "believes," "intends," "projects," "forecasts," "plans," "estimates," "anticipates," "continues," "targets," or similar terms, variations of such terms or the negative of such terms. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the Company's ability to meet debt obligations and adhere to the restrictions and covenants imposed under its various debt agreements; the timely receipt of merchandise and the Company's ability to obtain adequate trade credit from its key factors and vendors; risks arising from general economic and market conditions (including uncertainties arising from acts of terrorism or war); the ability to improve the profitability and cash flows of its stores or to sell, sublease or close underperforming stores; the ability to modify operations in order to minimize the adverse impact of rising costs, including but not limited to health care, workers' compensation, property and casualty insurance and utilities costs; the effects of seasonality and weather conditions, changing consumer trends and preferences, competition, consumer credit, the Company's dependence on its key personnel and general labor conditions, all of which are described in more detail in Gottschalks' Annual Report on Form 10-K and other reports filed by Gottschalks with the Securities and Exchange Commission. GOTTSCHALKS PRESENTLY DOES NOT INTEND TO UPDATE THESE STATEMENTS AND UNDERTAKES NO DUTY TO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.