The quarterly net income of $300,000, or 2 cents per share, surpassed last year's second quarter net income of $200,000, also 2 cents a share, and CEO Jim Famalette commented on the comparison in the company's conference call with financial analysts. This year's second quarter performance "exceeded bottom-line results last year that were the best for a second quarter in more than 15 years," Famalette said.

Comparable store sales grew 3.1% in the quarter as total sales increased 2.6% to $151.6 million versus last year's second quarter. Famalette said the company has made "steady progress in our initiative to appeal to a broader customer base through our focus on several important fashion categories such as better sportswear, accessories, shoes and junior apparel."

Gottschalk's opened its new lifestyle store at the River Park shopping center in Fresno, CA on Aug. 11 and Famalette said during the conference call that the new store "has already generated results that have exceeded our expectations." The store offers "a wider selection of better merchandise and more fashion-forward merchandise," he said.