Exhibit 99.1
The Gymboree Corporation Reports Third Quarter 2003 Results
BURLINGAME, Calif., Nov. 18 /PRNewswire-FirstCall/ -- The Gymboree
Corporation (Nasdaq: GYMB) today reported earnings of $0.27 per diluted share
for the third fiscal quarter ended November 1, 2003 compared to earnings of
$0.21 per diluted share for the same period last year.
Net sales from retail operations for the third fiscal quarter ended
November 1, 2003 totaled $148.1 million, a 2% increase over the $144.5 million
in net sales from retail operations reported for the third fiscal quarter
ended November 2, 2002. Comparable store sales for the quarter decreased 3%
over the same period last year, making the 2003 year-to-date comparable store
sales flat to last year. Total net sales for the third fiscal quarter,
including sales from Gymboree Play & Music operations, were $151.0 million, an
increase of 2% compared to total net sales of $147.9 million for the third
fiscal quarter last year.
"Our strategy of maximizing opportunities for the Gymboree brand and
prudently growing the Janie and Jack business continues to drive the company's
productivity and profitability," said Lisa Harper, The Gymboree Corporation's
chairman and chief executive officer. "These efforts enabled us to grow our
earnings by 32 percent for the quarter."
Business Outlook
For November, comparable store sales for retail operations are expected to
be flat compared to the prior year. For the fourth fiscal quarter in total,
the Company expects comparable store sales to be flat to the prior year. The
Company also reaffirmed its fourth fiscal quarter guidance of earnings per
diluted share to be in the range of $0.39 to $0.41. For the full fiscal year
2003, the Company now expects earnings per diluted share to be in the range of
$0.86 to $0.88.
Management Presentation
A live broadcast of the discussion of third quarter 2003 earnings results
will be available to interested parties at 1:30 p.m. PST (4:30 p.m. EST) on
Tuesday, November 18. To listen to the live broadcast over the Internet,
please log on to gymboree.com, click on "Our Company" at the bottom of the
page, go to "Investor and Media Relations" and then "Conference Calls & Web
casts." A replay of the call will be available shortly after the broadcast
through midnight EST, November 24, 2003, at 703-925-2533, pass code 6414309,
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 November
1, 2003, the Company operated a total of 612 stores: 587 Gymboree(R) retail
stores (536 in the United States, 27 in Canada, and 24 in Europe) and 25 Janie
and Jack(TM) retail shops in the United States. The Company also operates
online stores at gymboree.com and janieandjack.com, and offers directed
parent-child developmental play programs at 533 franchised and company-
operated centers in the United States and 25 other countries.
Forward-Looking Statements
The foregoing earnings figures the third fiscal quarter 2003 and third
fiscal quarter 2002 are un-audited and subject to quarter-end and year- end
adjustment, and could differ materially from those indicated. 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
differ materially as a result of a number of factors, including customer
reactions to new merchandise and service levels, 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, 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.
THE GYMBOREE CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share and store data)
(Unaudited)
13 Weeks Ended 39 Weeks Ended
Nov. 1, Nov. 2, Nov. 1, Nov. 2,
2003 2002 2003 2002
Net sales:
Retail $148,148 $144,539 * $394,586 $379,229 *
Play & music 2,894 3,338 * 9,001 10,497 *
Total net sales 151,042 147,877 403,587 389,726
Cost of goods sold, including
buying & occupancy expenses (88,708) (87,024)* (241,197) (230,438)*
Gross profit 62,334 60,853 162,390 159,288
Selling, general and
administrative expenses (48,992) (49,990)* (139,424) (140,612)*
Operating income 13,342 10,863 22,966 18,676
Foreign exchange gains (losses) (31) (96) 183 385
Interest income (expense), net 101 (526) 266 (878)
Income before income taxes 13,412 10,241 23,415 18,183
Income tax expense (5,097) (3,943) (8,898) (7,000)
Net income $8,315 $6,298 $14,517 $11,183
Net income per share:
Basic $0.28 $0.22 $0.49 $0.39
Diluted $0.27 $0.21 $0.47 $0.37
Weighted average shares
outstanding:
Basic 29,687 29,050 29,518 28,930
Diluted 30,837 30,702 30,764 30,583
Number of stores at end of period 612 585 612 585
* Prior year amounts were reclassified to conform to the 2003
presentation.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
November 1, February 1, November 2,
2003 2003 2002
Current Assets
Cash and cash equivalents $56,463 $60,628 $38,197
Accounts receivable 8,089 7,506 4,979
Merchandise inventories 81,832 62,561 71,148
Prepaid expenses and deferred
taxes 11,736 10,764 10,310
Total current assets 158,120 141,459 124,634
Property and Equipment, net 110,748 106,464 106,829
Lease Rights, Deferred Taxes and
Other Assets 6,808 7,213 4,553
Total Assets $275,676 $255,136 $236,016
Current Liabilities
Accounts payable $35,185 $27,150 $26,126
Accrued liabilities 31,337 37,570 31,942
Total current liabilities 66,522 64,720 58,068
Long Term Liabilities
Deferred rent and other liabilities 21,153 20,998 21,318
Stockholders' Equity 188,001 169,418 156,630
Total Liabilities and
Stockholders' Equity $275,676 $255,136 $236,016
SOURCE The Gymboree Corporation
-0- 11/18/2003
/CONTACT: Myles McCormick, Investor Relations, +1-650-696-2933, or
investor_relations@gymboree.com, or Jenn Bonzagni Marshall, Media Relations,
+1-650-373-7637, or media_relations@gymboree.com, both of Gymboree
Corporation/
/Web site: http://www.gymboree.com /
(GYMB)