Gottschalks Ups Income
By Staff -- Home Textiles Today, 9/5/2005
Fresno, Calif. —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.”
| Qtr. 7/30 (x000) | 2005 | 2004 | % change |
| 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% | – |
| (loss) 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. |
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