WWD.com/beauty-industry-news/financial/gottschalks-on-discrepancy-400k-change-not-unusual-732152/
government-trade
government-trade

Gottschalks on Discrepancy: $400K Change Not Unusual

NEW YORK — Gottschalks Inc. on Monday said no single item accounted for the approximately $400,000 greater loss the company reported in its audited fourth-quarter and yearend results and that the discrepancy from the previously issued unaudited...

NEW YORK — Gottschalks Inc. on Monday said no single item accounted for the approximately $400,000 greater loss the company reported in its audited fourth-quarter and yearend results and that the discrepancy from the previously issued unaudited figures was not unusual.

As reported, late Friday the Fresno, Calif.-based department store chain released its audited fourth-quarter and full-year financial results, which showed that its losses for both periods ended Feb. 1 were about $400,000 deeper than the company had reported in its initial March earnings statement. The company’s audited 10-K filing with the Securities and Exchange Commission showed that costs of sales for the year were an audited $457.1 million, higher than the unaudited report of $456.5 million. As a result, Gottschalks’ net loss for the fourth quarter was actually $4.6 million, or 36 cents a share, and the loss for the year was $12 million, or 94 cents a share. In March, the retailer reported an unaudited fourth-quarter loss of $4.2 million, 33 cents a share, and an annual loss of $11.6 million, or 91 cents a share.

Reached for comment, a spokesman said the company issued the statement regarding the audited results in the 10-K filing in the spirit of greater corporate transparency as mandated by SEC Regulation FD.

In a separate matter, also on Monday, Gottschalks said its board of directors has approved a new stock repurchase program for the purchase of up to 1 million of the company’s common shares over the remainder of the fiscal year. Gottschalks said the shares may be purchased from time to time at the company’s discretion in the open market. Gottschalks currently has approximately 12.8 million shares outstanding.