SAN FRANCISCO, Sept. 21 /PRNewswire-FirstCall/ -- The Gymboree Corporation (NASDAQ:GYMB) today increased net sales and earnings expectations for both the third quarter and full year of fiscal 2006. Based on stronger than expected performance from its baby sale earlier in the month and the "Circle of Friends" event this past weekend, the Company now expects comparable store sales from retail operations for the third fiscal quarter to be in the range of low double-digits, an increase from previous guidance of mid-single digit growth for the same fiscal quarter.
"September sales to date are exceeding our expectations," said Matthew McCauley, Chairman and Chief Executive Officer. "We are pleased with the response to our focused marketing efforts and exceptional product. As a result, we are increasing our financial guidance for the quarter."
The Company now expects earnings for the third fiscal quarter of 2006 to be in the range of $0.53 to $0.55 per diluted share, compared to prior Company guidance of $0.43 to $0.45 per diluted share for the same period. Full fiscal year earnings are expected to be in the range of $1.67 to $1.70 per diluted share, representing a $0.10 increase from prior guidance.
For more information about September sales to-date, please listen to The Gymboree Corporation's sales recording by calling the Company's Investor Relations Hotline at 415-278-7933. The recording will be available Thursday, September 21 at 7:55 a.m. ET through Wednesday, September 27 at 11:59 p.m. PT.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique, high- quality products delivered with personalized customer service. As of August 26, 2006, the Company operated a total of 688 stores: 571 Gymboree(R) retail stores (543 in the United States and 28 in Canada), 29 Gymboree Outlet stores, 71 Janie and Jack(R) retail shops and 17 Janeville(R) stores in the United States. The Company also operates online stores at www.gymboree.com and www.janieandjack.com, and offers directed parent-child developmental play programs at 533 franchised and company-operated centers in the United States and 26 other countries.
The foregoing sales and earnings guidance for the third fiscal quarter ending October 28, 2006 and full year 2006 are un-audited and subject to quarter-end and year-end adjustment, and could differ materially from the financial information indicated. The foregoing paragraphs contain forward-looking statements relating to 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 differ materially as a result of a number of factors, including 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, general economic conditions, 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 28, 2006. These forward-looking statements reflect The Gymboree Corporation's expectations as of September 21, 2006. The Gymboree Corporation undertakes no obligation to update the information provided herein.
NOTE: Gymboree, Janie and Jack, and Janeville are registered trademarks of The Gymboree Corporation.
Source: The Gymboree Corporation