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Gottschalks posts Q3 results, appoints Mr. Robert as VP of IT
10 Dec '07
4 min read
Gottschalks Inc reported unaudited financial results for the third quarter of fiscal 2007. Net loss for the third quarter was $4.1 million, or $0.30 per diluted share, compared to net loss of $2.7 million or $0.20 per diluted share, for the third quarter of fiscal 2006.
For the first nine months of fiscal 2007, net loss was $13.6 million, or $0.99 per diluted share, compared to a net loss of $6.2 million or $0.46 per diluted share in the first nine months of fiscal 2006. As previously reported, same store sales decreased 5.1% for the third quarter of 2007.
Total sales decreased by 7.7% to $137.4 million from $148.8 million for the third fiscal quarter last year. Year to date same store sales decreased 3.4%. Total sales for the nine months ended November 3rd decreased 4.9% to $424.1 million compared to $445.7 million in the same period in fiscal 2006.
The Company operated four fewer stores in the third quarter of fiscal 2007 compared to the same period of the prior year. Jim Famalette, Chairman and Chief Executive Officer of Gottschalks, stated, “Both our top and bottom line results for the third quarter were impacted by the difficult retail environment.
While we have experienced positive sales trends in our Pacific Northwest stores, this performance has been more than offset by challenges in many of our California stores. The issues in the home mortgage industry appear to be impacting the California consumer.
In addition, our gross margin has been negatively impacted by a more promotional retail selling environment. However, we are pleased with our ability to reduce SG&A expenditures below last year's levels for both the quarter and year to date period.
We were also successful in managing our inventory, ending the quarter with comparable store inventory 3.5% below that of the same period last year.
“Despite recent challenges, we have continued to focus our efforts on making progress on our Value Improvement Program (V.I.P.) that will ultimately strengthen sales, improve operating performance and maximize shareholder value. We recently opened our new store in Elk Grove, California and its initial performance has been very strong.
For the first nine months of fiscal 2007, net loss was $13.6 million, or $0.99 per diluted share, compared to a net loss of $6.2 million or $0.46 per diluted share in the first nine months of fiscal 2006. As previously reported, same store sales decreased 5.1% for the third quarter of 2007.
Total sales decreased by 7.7% to $137.4 million from $148.8 million for the third fiscal quarter last year. Year to date same store sales decreased 3.4%. Total sales for the nine months ended November 3rd decreased 4.9% to $424.1 million compared to $445.7 million in the same period in fiscal 2006.
The Company operated four fewer stores in the third quarter of fiscal 2007 compared to the same period of the prior year. Jim Famalette, Chairman and Chief Executive Officer of Gottschalks, stated, “Both our top and bottom line results for the third quarter were impacted by the difficult retail environment.
While we have experienced positive sales trends in our Pacific Northwest stores, this performance has been more than offset by challenges in many of our California stores. The issues in the home mortgage industry appear to be impacting the California consumer.
In addition, our gross margin has been negatively impacted by a more promotional retail selling environment. However, we are pleased with our ability to reduce SG&A expenditures below last year's levels for both the quarter and year to date period.
We were also successful in managing our inventory, ending the quarter with comparable store inventory 3.5% below that of the same period last year.
“Despite recent challenges, we have continued to focus our efforts on making progress on our Value Improvement Program (V.I.P.) that will ultimately strengthen sales, improve operating performance and maximize shareholder value. We recently opened our new store in Elk Grove, California and its initial performance has been very strong.
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