Gottschalks Reports March 2007 Sales

FRESNO, Calif., April 12 /PRNewswire-FirstCall/ -- Gottschalks Inc. today announced that same store sales for the month of March 2007 increased 6.4% compared to the prior year. Total sales for the month increased 5.3% to $58.9 million from $56.0 million in March 2006. On a year-to-date basis, same store sales increased 1.9% from the same period of the prior year. Total sales for the year-to-date period increased 1.3% to $101.5 million compared to $100.3 million for the same period of fiscal 2006. The Company operated three fewer stores than in the comparable periods last year.

Jim Famalette, president and chief executive officer of Gottschalks, said, "We are pleased with our strong sales performance in March. Our 6.4% comparable store sales growth reflects the benefit of the Easter holiday shift and positive consumer reaction to our spring fashion trends. Our best performing merchandise areas during the month were shoes, dresses, special sizes and childrens. We ended the month with comparable inventory levels up 3.5%."

Sales results are summarized as follows: Same Store April 7, April 1, Total % Sales % 2007 2006 Change Change (in 000's) Sales, 5 Weeks Ended $58,902 $55,965 5.3% 6.4% Sales, 9 Weeks Ended $101,522 $100,254 1.3% 1.9% About Gottschalks

Gottschalks is a regional department store chain, currently operating 60 department stores and 5 specialty apparel stores in six western states, including California (38), Washington (8), Alaska (6), 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 the stores acquired from Lamonts Apparel, Inc., 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 does not presently intend to update these statements and undertakes no duty to any person to effect any such update under any circumstances.