Thursday August 6, 8:03 am Eastern Time
Company Press Release
The Gymboree Corporation Reports July Sales
BURLINGAME, Calif.--(BUSINESS WIRE)--Aug. 6, 1998--The Gymboree Corporation (NASDAQ:GYMB - news) reported net sales for the four week period ended August 1, 1998 of $19.6 million, a decrease of 13% from sales of $22.6 million for the same period last year. Comparable store sales for the four week period decreased 31% compared to last year.
Net sales for the second fiscal quarter ended August 1, 1998 were $99.8 million, an increase of 39% from sales of $71.7 million for the same period last year. Comparable store sales for the quarter increased 16% compared to last year.
Net sales for the 26 weeks ended August 1, 1998 were $203.0 million, an increase of 29% from sales of $156.9 million for the same period last year. Comparable store sales for the 26 week period increased 8% compared to last year.
''While our comp store sales for June, up 65%, benefited from our major sales event that month,'' stated Gary White, President and Chief Executive Officer, ''our July sales were negatively impacted by the resulting lower inventory levels. The sales event did have its intended effect of clearing out our spring and summer merchandise. We believe, however, that this event will have an adverse effect on our second quarter profit margins.''
The Gymboree Corporation designs, manufactures, and retails unique, high quality apparel and accessories for children from birth to seven years of age. The Company operates 495 stores which includes 468 stores in 48 states in the U.S., 13 stores in Canada, and 14 stores in Europe. The Company also offers directed parent-child developmental play programs at over 390 franchised centers.
The foregoing statements in paragraph four regarding inventory levels and anticipated profit margins are forward-looking statements within the meaning of the Federal Securities laws. Actual results could differ materially from those projected in the forward-looking statement as a result of a number of factors, including competitive market conditions, the degree of promotional pricing activity by the Company, inventory levels, the ability of the Company to successfully identify and respond to emerging children's fashion trends, the ability of the Company to effectively monitor and control costs, the ability of the Company to effectively manage international and domestic growth, levels of discretionary consumer spending and general economic conditions. Other factors that may cause actual results to differ materially include those set forth in the reports that the Company files from time to time with the Securities and Exchange Commission.
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Contact:
The Gymboree Corporation
Investor Contact, 650/696-7540
or
Kekst and Company
Dawn Dover, 212/521-4817
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