Gottschalks Reports 16% Jump in Profit
Gottschalks Inc. said Tuesday that second-quarter profit grew 16% as a broader selection of sportswear, accessories, shoes and junior fashions boosted sales.
Net income rose to $259,000 from $224,000 in the year ago period, with per-share earnings flat at 2 cents as the number of shares outstanding increased nearly 5%.
The Fresno-based retailer said the recent quarter included about $200,000 in store-opening expenses.
Gottschalks said revenue rose 3% to $153 million from $149.3 million. Sales at stores open at least one year increased 3.1% in the quarter.
Chief Executive Jim Famalette called the results “the best for a second quarter in more than 15 years.†He said the company cut its debt by 12% from a year ago to $15.1 million.
Looking ahead, Gottschalks projected a same-store sales gain of 2% in 2005 and full-year earnings of between 59 cents and 65 cents a share.
Shares of Gottschalks fell 32 cents Tuesday to $10.20. The stock has grown from a 52-week low of $4.55 to trade as high as $12.45.
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