SAN FRANCISCO, Aug. 19 /PRNewswire-FirstCall/ -- The Gymboree Corporation (Nasdaq: GYMB) today reported earnings of $12.2 million or $0.41 per diluted share for the second fiscal quarter ended August 1, 2009. This compares to earnings of $8.0 million or $0.27 per diluted share for the same period of the prior year. Current year results reflect a benefit of $0.05 per diluted share due to a lower than anticipated tax rate for the quarter.
Net sales from retail operations for the fiscal quarter ended August 1, 2009, totaled $212.3 million, a 5% increase from the $202.8 million in net sales from retail operations for the second fiscal quarter of the prior year. As previously reported, comparable store sales from retail operations for the second fiscal quarter decreased 1% versus the same period last year. Total net sales for the second fiscal quarter were $215.4 million, an increase of 5% compared to total net sales of $205.7 million for the second fiscal quarter last year.
Business Outlook
For the third fiscal quarter of 2009, the Company expects a low-single digit decrease in comparable store sales versus the same period of the prior year. The Company expects earnings for the third fiscal quarter in the range of $0.95 to $1.03 per diluted share.
Management Presentation
The live broadcast of the discussion of second quarter 2009 earnings results will be available to interested parties at 1:30 p.m. PT (4:30 p.m. ET) on Wednesday, August 19, 2009. 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 ET, Wednesday, August 26, 2009, at 800-642-1687, passcode 85034602, as well as archived on our Web site at the same location as the live Web cast.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of August 1, 2009, the Company operated a total of 926 retail stores: 624 Gymboree(R) stores (591 in the United States, 31 in Canada and 2 in Puerto Rico), 135 Gymboree Outlet stores, 120 Janie and Jack(R) shops and 47 Crazy 8(R) 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 616 franchised and Company-operated Gymboree Play & Music(R) centers in the United States and 30 other countries.
Forward-Looking Statements
The foregoing financial information for the second fiscal quarter ended August 1, 2009, 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 increasing levels of unemployment and consumer debt, extreme volatility in the financial markets, current recessionary 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 31, 2009. These forward-looking statements reflect The Gymboree Corporation's expectations as of August 19, 2009. 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.
EXHIBIT A
THE GYMBOREE CORPORATION
------------------------
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
(In thousands, except per share and operating data)
(Unaudited)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
August 1, August 2, August 1, August 2,
2009 2008 2009 2008
---- ---- ---- ----
Net sales:
Retail $212,262 $202,818 $440,241 $441,735
Play & Music 3,132 2,930 6,028 6,118
----- ----- ----- -----
Total net sales 215,394 205,748 446,269 447,853
Cost of goods sold, including
buying and occupancy
expenses (122,166) (111,806) (243,512) (230,493)
-------- -------- -------- --------
Gross profit 93,228 93,942 202,757 217,360
Selling, general and
administrative expenses (75,809) (81,067) (149,154) (162,892)
------- ------- -------- --------
Operating income 17,419 12,875 53,603 54,468
Other income 201 417 509 698
--- --- --- ---
Income before
income taxes 17,620 13,292 54,112 55,166
Income tax expense (5,459) (5,281) (20,143) (22,117)
------ ------ ------- -------
Net income $12,161 $8,011 $33,969 $33,049
======= ====== ======= =======
Net income per share:
Basic $0.42 $0.29 $1.19 $1.19
Diluted $0.41 $0.27 $1.15 $1.14
Weighted average shares
outstanding:
Basic 28,654 27,988 28,551 27,765
Diluted 29,854 29,166 29,655 29,060
Operating Data:
Stores Open at the
Beginning of
the Period 901 811 886 786
New Stores 25 26 40 51
Closed Stores - (2) - (2)
-- -- -- --
Stores Open at the End of
the Period 926 835 926 835
=== === === ===
Gross Store Square Footage 1,818,000 1,623,000 1,818,000 1,623,000
Merchandise Inventories per
Square Foot $71 $80 $71 $80
Supplemental Financial
Information:
Depreciation and
amortization $9,195 $8,616 $18,177 $17,021
Interest income, net $174 $349 $421 $586
Stock-based
compensation $4,478 $4,913 $8,351 $9,424
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(In thousands)
(Unaudited)
August 1, January 31, August 2,
2009 2009 2008
---- ---- ----
Current Assets
Cash and cash
equivalents $164,745 $140,472 $43,775
Accounts
receivable 16,553 18,735 16,680
Merchandise
inventories 129,293 114,972 129,099
Prepaid income
taxes 12,487 - 22,495
Prepaid
expenses and
deferred taxes 28,517 19,704 25,244
------ ------ ------
Total current
assets 351,595 293,883 237,293
------- ------- -------
Property and
Equipment, net 209,961 204,227 200,730
Deferred Taxes
and Other Assets 20,818 22,471 19,578
Total Assets $582,374 $520,581 $457,601
======== ======== ========
Current Liabilities
Accounts payable $55,650 $44,400 $53,876
Accrued
liabilities 70,528 69,443 73,882
------ ------ ------
Total current
liabilities 126,178 113,843 127,758
------- ------- -------
Long Term Liabilities
Deferred
liabilities 76,504 72,463 65,491
Stockholders'
Equity 379,692 334,275 264,352
------- ------- -------
Total
Liabilities and
Stockholders'
Equity $582,374 $520,581 $457,601
======== ======== ========
SOURCE The Gymboree Corporation
