SAN FRANCISCO, Nov. 4, 2010 /PRNewswire-FirstCall/ -- The
Gymboree Corporation (Nasdaq: GYMB) reported net sales from retail
operations for the third fiscal quarter ended October 30, 2010, of $276.6 million, an increase of 4% compared to net
sales from retail operations of $265.6
million for the third fiscal quarter of the prior year.
Comparable store sales for the third fiscal quarter decreased
4%.
The Company now expects earnings for the third fiscal quarter to
be in the range of $1.21 to $1.23 per
diluted share. These earnings estimates include the impact of
approximately $3.5 million of
transaction-related expenses associated with the recently announced
pending purchase of the Company by affiliates of Bain Capital.
Excluding these transaction costs, earnings per diluted share
for the third fiscal quarter are now expected in the range of
$1.28 to $1.30, at the high end of
the Company's previous guidance of $1.25 to
$1.30.
"I am pleased to report earnings expectations at the high end of
our previous range excluding transaction-related expenses," said
Matthew McCauley, Chairman and Chief
Executive Officer. "Our consistent focus on expense
management has allowed us to continue to leverage costs despite the
difficult retail environment. I am particularly excited about
the performance of Crazy 8 during the back half of the quarter,
validating our assumption that the advent of healthier inventory
levels would translate into a stronger performance in both sales
and contribution."
Management Presentation
For more information about third quarter sales, please listen to
The Gymboree Corporation's monthly sales recording by calling the
Company's Investor Relations Hotline at 415-278-7933. The recording
will be available Thursday, November
4 at 7:55 a.m. ET through
Wednesday, November 10 at
11:59 p.m. PT.
The broadcast of the third quarter 2010 financial results will
be available to interested parties at 6:00
a.m. PT (9:00 a.m. ET) on
Monday, November 15, 2010. To listen
to the live broadcast over the internet, please log on to
www.gymboree.com, click on "Our Company" at the bottom of the page,
go to "Investor and Media Relations" and then "Conference Calls,
Webcasts & Presentations." A replay of the call will be
available two hours after the broadcast through midnight PT, Monday,
November 22, 2010, at 800-642-1687.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique,
high-quality products delivered with personalized customer service.
As of October 30, 2010, the Company
operated a total of 1,049 retail stores: 636 Gymboree® stores (595
in the United States, 37 in
Canada. 2 in Puerto Rico and 2 in Australia), 148 Gymboree Outlet stores, 122
Janie and Jack® shops and 143 Crazy 8® stores in the United States. The Company also operates
online stores at www.gymboree.com, www.janieandjack.com and
www.crazy8.com, and offers directed parent-child developmental play
programs at 672 franchised and Company-operated Gymboree Play &
Music® centers in the United
States and 33 other countries.
Forward-Looking Statements
The foregoing financial information for the third fiscal
quarter ended October 30, 2010, is
unaudited and subject to quarter-end and year-end
adjustment. The foregoing paragraphs contain
forward-looking statements relating to The Gymboree Corporation's
anticipated sales growth and future financial performance. These
are forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995. Actual results could vary materially as a result of a number
of factors, including costs and uncertainties relating to the
consummation of the transactions contemplated by the merger
agreement with affiliates of Bain Capital, high levels of
unemployment and consumer debt, volatility in the financial
markets, general economic conditions, customer reactions to new
merchandise, service levels and new concepts, success in meeting
our delivery targets, the level of our promotional activity, our
gross margin achievement, our ability to appropriately manage
inventory, effects of future embargos from countries used to source
product, and competitive market conditions. Other factors that may
cause actual results to differ materially include those set forth
in the reports that we file from time to time with the Securities
and Exchange Commission, including our annual report on
Form 10-K for the year-ended January 30, 2010. These
forward-looking statements reflect The Gymboree Corporation's
expectations as of October 30,
2010. The Gymboree Corporation undertakes no obligation
to update the information provided herein.
Gymboree, Janie and Jack, Crazy 8 and Gymboree Play & Music
are registered trademarks of The Gymboree Corporation.
SOURCE The Gymboree Corporation