Exhibit 99.1


   The Gymboree Corporation Reports July and Second Quarter Sales; Updates
                                   Earnings

    BURLINGAME, Calif., Aug. 5 /PRNewswire-FirstCall/ -- The Gymboree
Corporation (Nasdaq: GYMB) reported net sales from retail operations for the
four-week period ended July 31, 2004, of $41.0 million, an increase of
17% compared to net sales from retail operations of $35.0 million for the same
four-week period last year. Comparable store sales for the four-week period
increased 12% compared to flat comparable store sales for the same period last
year.
    Net sales from retail operations for the second fiscal quarter of 2004
were $119.8 million, an increase of 9% compared to net sales from retail
operations of $110.4 million for the same period last year. Comparable store
sales for the second fiscal quarter increased 2% compared to the same period
last year.
    "While our comparable sales were strong in July, gross margins were lower
than expected due to a high percentage of sales of discounted merchandise,"
said Lisa Harper, chairman and chief executive officer, The Gymboree
Corporation. "As a result of the promotional environment this quarter, we are
slightly adjusting our second quarter earnings estimates. We believe that our
business remains strong and are excited about our product assortment in all
departments for the balance of the year."
    The Gymboree Corporation now projects earnings per diluted share for the
second fiscal quarter 2004 to be in the range of $(0.10) to $(0.11). In
addition, The Gymboree Corporation projects that comparable store sales in
August will be flat to the prior year.

    Management Presentations
    For more information about July and second quarter sales, please listen to
The Gymboree Corporation's monthly sales recording by calling its Investor
Relations Hotline at 650-696-2933. The recording will be available Thursday,
August 5 at 7:55 a.m. EDT through Tuesday, August 12 at 11:59 p.m. PDT.
    The live broadcast of the discussion of second quarter 2004 earnings
results will be available to interested parties at 1:30 p.m. PDT (4:30 p.m.
EDT) on Tuesday, August 17.  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,
Webcasts & Presentations." A replay of the call will be available shortly
after the broadcast through midnight EDT, August 24, 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 July
31, 2004, the Company operated a total of    646 stores: 593 Gymboree(R)
retail stores (543 in the United States, 28 in Canada, and 22 in Europe),
46 Janie and Jack(R) retail shops and 7 Janeville(TM) stores 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 525 franchised and company-operated centers in the United States and
29 other countries.

    Forward-Looking Statements
    The foregoing sales figures for July and the second fiscal quarter of 2004
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,
including our annual report on Form 10-K for the year ended January 31, 2004.


SOURCE  Gymboree Corporation
    -0-                             08/05/2004
    /CONTACT:  investors, Charles Bracher, +1-650-373-7137, or
investor_relations@gymboree.com, or media, Jennifer 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:  REA FAS
SU:  SLS CCA ERP