NEW YORK — Gottschalks Inc. reported mixed results on Tuesday and lowered guidance for the full fiscal year.
The Fresno, Calif.-based retailer increased its third-quarter loss compared with last year, but narrowed the loss for the nine-month period.
For the three months ended Oct. 29, Gottschalks lost $1.6 million, or 12 cents a share, versus $1.5 million, or 12 cents, in the same year-ago period. Total sales rose 2.3 percent to $151.3 million from $147.9 million, while same-store sales dipped by 0.5 percent for the quarter. Sales from continuing operations also rose 2.3 percent to $150.5 million from $147 million. Discontinued operations represent closed stores.
For the nine months, the loss was reduced slightly to $3.4 million, or 25 cents, compared with a loss of $3.5 million, or 27 cents, a year ago. Sales from continuing operations inched up 1.6 percent to $444.6 million from $437.6 million.
“While we were pleased with our progress on key operating objectives, we experienced mixed results for the quarter,” Jim Famalette, president and chief executive officer, said in a statement. “First, our comparable-store sales for the quarter were not as strong as we had expected, primarily due to soft sales in our home division. In addition, we experienced increased distribution costs related to higher fuel prices as well as expenses associated with a new store opening and the closing of another store.”
The ceo highlighted the company’s successful River Park lifestyle center store opening in August in Fresno, which he said contributed to a 2.3 percent increase in total sales for the quarter. “Our key merchandise areas, such as better sportswear, juniors, accessories and shoes, continued to generate solid results and we plan to maintain our emphasis on these areas going forward. Finally, we were able to increase our gross margin as a result of strong inventory management and controlling our promotional activity,” he added.
Famalette said that, based in part on third-quarter results and recent retail trends, the company was taking a more conservative view regarding the balance of the year. It lowered guidance for the full fiscal year to the range of 50 cents to 52 cents in diluted earnings per share.