Exhibit 99.1 The Gymboree Corporation Reports Fourth Quarter and FY 2003 Results and February Sales Results BURLINGAME, Calif., March 2 /PRNewswire-FirstCall/ -- The Gymboree Corporation (Nasdaq: GYMB) today reported net income of $11.2 million or $0.36 per diluted share for the fourth fiscal quarter ended January 31, 2004, compared to net income of $10.6 million or $0.35 per diluted share for the fourth fiscal quarter ended February 1, 2003. For the 2003 fiscal year, The Gymboree Corporation had net income of $25.7 million or $0.83 per diluted share, compared to net income of $21.8 million or $0.71 per diluted share for the 2002 fiscal year. "We are very pleased with the 18 percent increase in earnings for the year and we're happy with February results, especially the current positive trend in the boy business," said Lisa Harper, The Gymboree Corporation's chairman and chief executive officer. "We're seeing continuous improvement in the overall business and a recent increase in our full-price selling due to fewer promotions in February." "The increase in earnings included significant investments made in Janie and Jack and our new test concept, Janeville(TM). It's important for the long- term growth of the company that we continue to develop and launch new niche brands when we see an opportunity in the marketplace," Harper continued. Net Sales Report Net sales from retail operations for the fourth fiscal quarter ended January 31, 2004, were $171.8 million, an increase of 11% compared to the $154.8 million in net sales for the same period last year. Comparable store sales for the quarter increased 4% compared to sales reported during the fourth fiscal quarter last year. Total net sales, including sales from Play & Music operations, for the fourth fiscal quarter were $174.4 million, an increase of 9% compared to the $159.3 million in net sales for the same period last year. For the 52 weeks ended January 31, 2004, net sales from retail operations were $566.3 million, an increase of 6% compared to the $534.0 million in net sales reported for the same period last year. Comparable store sales for the 52-week period increased 1% compared to the sales reported for the same period last year. Total net sales, including sales from Play & Music operations, for the 52 weeks ended January 31, 2004, were $578.0 million, an increase of 5% compared to the $549.0 million in net sales reported for the same period last year. February Retail Sales The Gymboree Corporation also reported that comparable store sales from retail operations for the four-week period ended February 28, 2004, increased by 7% compared to a 2% decrease in sales reported for the same period last year. Net sales from retail operations for the four-week period were $42.4 million, compared to net sales from retail operations of $37.5 million for the four weeks ended March 1, 2003, an increase of 13%. Business Outlook The Gymboree Corporation projects comparable store sales from retail operations for the month of March to be in the range of negative low single digits to flat, with comparable store sales for the first fiscal quarter in total to be in the range of flat to positive low single digits. The Gymboree Corporation also reiterated earnings guidance for the first, second, third and fourth quarters of 2004 and for fiscal year 2004. The Company expects earnings to be in the range of $0.25 to $0.27, $(0.10) to $(0.08), $0.29 to $0.31, and $0.46 to $0.48, respectively. These expectations include investments in the new test concept, Janeville. As a result, earnings per diluted share for the fiscal year 2004 are expected in the range of $0.90 to $0.98. Management Presentation A live broadcast of the discussion of sales figures for fourth quarter and fiscal year 2003, February 2004 and an introduction of Janeville, The Gymboree Corporation's newest test concept, will be available to interested parties at 1:30 p.m. PST (4:30 p.m. EST) on Tuesday, March 2. 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, March 9, 2004, at 703-925-2533, pass code 386507, 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 February 28, 2004, the Company operated a total of 619 stores: 587 Gymboree(R) retail stores (536 in the United States, 28 in Canada, and 23 in Europe) and 32 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 532 franchised and company- operated centers in the United States and 25 other countries. Forward-Looking Statements The foregoing sales figures for February 2004, and the foregoing sales and earnings figures for the fourth quarter and fiscal year 2003 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, 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, 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 Year Ended January 31, February 1, January 31, February 1, 2004 2003* 2004 2003* Net sales: Retail $171,760 $154,819 $566,346 $534,049 Play & music 2,646 4,443 11,647 14,940 Total net sales 174,406 159,262 577,993 548,989 Cost of goods sold, including buying & occupancy expenses (102,002) (88,653) (343,200) (319,093) Gross profit 72,404 70,609 234,793 229,896 Selling, general and administrative expenses (54,725) (53,459) (194,149) (194,071) Operating income 17,679 17,150 40,644 35,825 Foreign exchange gains (losses) (30) (181) 154 204 Interest income (expense), net 65 344 331 (533) Income before income taxes 17,714 17,313 41,129 35,496 Income tax expense (6,525) (6,666) (15,423) (13,666) Net income $11,189 $10,647 $25,706 $21,830 Net income per share: Basic $0.37 $0.36 $0.87 $0.75 Diluted $0.36 $0.35 $0.83 $0.71 Weighted average shares outstanding: Basic 30,069 29,179 29,656 28,992 Diluted 31,149 30,779 30,853 30,633 Number of stores at end of period 619 584 619 584 * Prior year amounts were reclassified to conform to the 2003 presentation. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) January 31, February 1, 2004 2003 Current Assets Cash and investments $89,553 $60,628 Accounts receivable 11,456 7,506 Merchandise inventories 73,017 62,561 Prepaid expenses and deferred taxes 5,564 10,764 Total current assets 179,590 141,459 Property and Equipment, net 112,744 106,464 Lease Rights, Deferred Taxes and Other Assets 6,377 7,213 Total Assets $298,711 $255,136 Current Liabilities Accounts payable 33,356 27,150 Accrued liabilities 34,965 37,570 Total current liabilities 68,321 64,720 Long Term Liabilities Deferred rent and other liabilities 26,644 20,998 Stockholders' Equity 203,746 169,418 Total Liabilities and Stockholders' Equity $298,711 $255,136 SOURCE The Gymboree Corporation -0- 03/02/2004 /CONTACT: Investor Relations, Charles Bracher, +1-650-373-7137, or investor_relations@gymboree.com, or Media Relations, Jenn Bonzagni Marshall, +1-650-373-7637, or media_relations@gymboree.com, both of Gymboree Corporation/ /Web site: http://www.gymboree.com/ (GYMB) CO: Gymboree Corporation ST: California IN: FAS REA SU: ERN ERP SLS CCA