Gottschalks Reports February 2008 Comparable Store Sales

FRESNO, Calif., March 6 /PRNewswire-FirstCall/ -- Gottschalks Inc. today announced that same store sales for the month of February decreased 9.5% from the prior year. Total sales for the month decreased 11.5% to $37.7 million compared to $42.6 million in the same period of fiscal 2007. The Company operated one less store for the first month of the fiscal year compared to the same period in fiscal 2007.

Jim Famalette, chairman and chief executive officer of Gottschalks said, "Our February sales results reflect persistent weak economic conditions as well as our planned reduction in inventory levels. During the month, we focused on clearing through winter merchandise and transitioning into our new spring product assortment. We continue to prudently manage our inventory levels and ended the month with 4.6% less comparable inventory than the same period last year. We believe we are better positioned both in the quality of our assortments as well as our inventory levels as we enter March. We continue to implement our key strategic initiatives that are designed to improve our business and contribute to the long-term growth of Gottschalks."

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.