Gottschalks Net Income Up for 2nd Quarter
Gottschalks Inc. reported good financial results for the second quarter of fiscal 2006. The Fresno, Calif., department store chain stated, on Aug. 24, that its net income for the second quarter was $486,000, or $0.04 per diluted share, compared with net income of $259,000, or $0.02 per diluted share for the second quarter of fiscal 2005.
However, Gottschalks also revealed that its business was still laboring under hard conditions. The retailer’s year-to-date net loss was $3.5 million, compared with a net loss of $1.7 million for the first six months of fiscal 2005. Same-store sales increased 1.1 percent for the second quarter of 2006. Total sales increased 1.2 percent to $153.4 million, from $151.6 million for the second quarter of fiscal 2005.
“We have a number of significant challenges,” Gottschalks president and chief executive, Jim Famalette, said during an Aug. 24 conference call. Famalette said the company believed fashion could help solve some of its business problems.
He also said the retailer was testing reducing square footage of its homelines department in order to devote more sales space to sportswear, juniors and cosmetics. “In general, softlines has a better margin the homelines business,” Famalette said. —Andrew Asch
