Gottschalks Inc. said Thursday its first-quarter loss widened as both revenues and comparable-store sales dropped by double-digit percentages.
For the three months ended May 3, the loss was $5.1 million, or 38 cents a diluted share, compared with a year-ago loss of $4.7 million, or 34 cents.
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Revenues declined 11.2 percent to $127.4 million from $143.5 million. That included a drop of 11.8 percent in sales to $125.1 million from $141.8 million. Comps for the quarter decreased 10.3 percent.
“Gottschalks, like many other retailers, continued to be affected by the difficult macroeconomic environment during the first quarter,” said Jim Famalette, chairman and chief executive officer of the Fresno, Calif-based regional retail chain.
He said the company is managing its inventory levels and promotional activity.
“We will continue to take a conservative, yet proactive approach to managing our organization throughout the remainder of 2008,” Famalette said. “We believe that we have the right strategies in place as well as a secure financial structure to position our business in the current challenging environment.”
The company recently completed a head-count reduction at its corporate headquarters that is expected to result in $1 million in annualized cost savings.