The Gymboree Corporation Franchise Updates Outlook for Second Quarter 2010
SAN FRANCISCO // PRNewswire-FirstCall // -- The Gymboree Corporation (Nasdaq: GYMB) today announced revised earnings expectations for the second fiscal quarter of 2010. The Company now expects earnings per diluted share for the second fiscal quarter in the range of $0.33 to $0.37. This represents an increase from the prior guidance of $0.30 to $0.34 per diluted share. The improvement in the earnings per share outlook is primarily the result of progress achieved with the Company's current share repurchase program during the second fiscal quarter and slightly improved expense management.
On June 8, 2010, the Board of Directors authorized the Company to utilize $100 million of its cash reserves to repurchase shares of the Company's outstanding common stock under a share repurchase program. As of July 3, 2010, the Company has repurchased over 2.2 million shares for a total of approximately $96 million. As a result, fully diluted shares outstanding for the second fiscal quarter are now expected to be approximately 28.0 million.
The Company continues to expect comparable store sales for the second fiscal quarter to be relatively flat versus the prior year.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of July 3, 2010, the Company operated a total of 1,002 retail stores: 630 Gymboree® stores (593 in the United States, 34 in Canada, 2 in Puerto Rico and 1 in Australia), 146 Gymboree Outlet stores, 118 Janie and Jack® shops and 108 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 667 franchised and Company-operated Gymboree Play & Music® centers in the United States and 33 other countries.
The foregoing financial information for the second fiscal quarter ending July 31, 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 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 July 8, 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