Exhibit 99.1
THE GYMBOREE CORPORATION REPORTS FIRST QUARTER 2005 RESULTS
SAN FRANCISCO, May 18 /PRNewswire-FirstCall/ -- The Gymboree Corporation
(Nasdaq: GYMB) today reported earnings from continuing operations of $5.3
million or $0.17 per diluted share for the first fiscal quarter ended April 30,
2005 compared to earnings from continuing operations of $7.6 million or $0.24
per diluted share for the same period last year.
Net sales from retail operations for the first fiscal quarter ended April
30, 2005 totaled $160.0 million, an 11% increase over the $144.4 million in net
sales from retail operations for the first fiscal quarter of the prior year. As
previously reported, comparable store sales from retail operations for the first
fiscal quarter increased 3% over the same period last year. Total net sales for
the first fiscal quarter were $163.0 million, an increase of 11% compared to
total net sales of $147.1 million for the first fiscal quarter last year.
Business Outlook
For the second fiscal quarter, the Company expects comparable store sales to
be flat to slightly positive to the prior year. The Company also reaffirmed its
second fiscal quarter guidance of a loss per diluted share from continuing
operations to be in the range of $0.23 to $0.26. For the full fiscal year 2005,
the Company now expects earnings per diluted share from continuing operations to
be in the range of $0.43 to $0.53.
Management Presentation
The live broadcast of the discussion of first quarter 2005 earnings results
will be available to interested parties at 1:30 p.m. PT (4:30 p.m. ET) on
Wednesday, May 18, 2005. To listen to the live broadcast over the Internet,
please log on to www.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 two hours after the
broadcast through midnight ET, Wednesday, May 25, 2005, at 800-642-1687,
passcode 6110917, as well as archived on our Web site at the same location as
the live Webcast.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique, high-
quality products delivered with personalized customer service. As of April 30,
2005, the Company operated a total of 647 stores: 575 Gymboree(R) retail stores
(547 in the United States and 28 in Canada), 57 Janie and Jack(R) retail shops
and 15 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 524 franchised and company-operated
centers in the United States and 25 other countries.
Forward-Looking Statements
The foregoing financial information for the fiscal quarter ended April 30,
2005 is un-audited and subject to quarter-end and year-end adjustment, and could
differ materially from the financial information 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,
unanticipated costs actually incurred in connection with the wind down of our UK
and Ireland operations, 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 29, 2005. These forward-looking statements
reflect The Gymboree Corporation's expectations as of May 18, 2005. The Gymboree
Corporation undertakes no obligation to update the information provided herein.
Gymboree and Janie and Jack are registered trademarks of The Gymboree
Corporation. Janeville is a trademark of The Gymboree Corporation.
THE GYMBOREE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share and store data)
(Unaudited)
13 Weeks Ended
----------------------------
April 30, May 1,
2005 2004
------------ ------------
Net sales:
Retail $ 160,003 $ 144,448
Play & Music and Other 2,963 2,667
Total net sales 162,966 147,115
Cost of goods sold, including buying and occupancy
expenses (98,336) (84,758)
Gross profit 64,630 62,357
Selling, general and administrative expenses (56,621) (50,603)
Operating income 8,009 11,754
Other income, net 206 238
Income from continuing operations before income
taxes 8,215 11,992
Income tax expense (2,936) (4,377)
Income from continuing operations, net of income tax 5,279 7,615
Income from discontinued operations, net of income tax 239 390
Income before cumulative effect of change in
accounting principle 5,518 8,005
Cumulative effect of change in accounting principle,
net of income tax -- 1,227
Net income $ 5,518 $ 9,232
Basic per share amounts:
Income from continuing operations, net of income tax $ 0.17 $ 0.25
Income from discontinued operations, net of income tax 0.01 0.01
Cumulative effect of change in accounting principle,
net of income tax -- 0.04
Net income $ 0.18 $ 0.30
Diluted per share amounts:
Income from continuing operations, net of income tax $ 0.17 $ 0.24
Income from discontinued operations, net of income tax 0.01 0.01
Cumulative effect of change in accounting principle,
net of income tax -- 0.04
Net income $ 0.18 $ 0.29
Weighted average shares outstanding:
Basic 31,166 30,476
Diluted 31,502 31,348
Number of stores at end of period 647 633
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, January 29, May 1,
2005 2005 2004
------------ ------------ ------------
Current Assets
Cash and cash equivalents $ 33,759 $ 30,599 $ 30,906
Marketable securities 45,000 30,000 79,300
Accounts receivable 11,333 16,547 9,267
Merchandise inventories 73,116 97,237 64,840
Income tax receivable 2,454 3,554 --
Prepaid expenses and deferred taxes 5,889 6,789 9,241
Current assets of discontinued operations 1,601 1,794 9,092
Total current assets 173,152 186,520 202,646
Property and Equipment, net 146,758 150,746 118,623
Lease Rights, Deferred Taxes and Other
Assets 13,910 14,433 9,328
Total Assets $ 333,820 $ 351,699 $ 330,597
Current Liabilities
Accounts payable $ 20,698 $ 39,241 $ 35,998
Accrued liabilities 35,958 41,803 43,765
Current liabilities of discontinued
operations 3,906 7,144 3,950
Total current liabilities 60,562 88,188 83,713
Long Term Liabilities
Deferred rent and other liabilities 49,220 46,105 33,710
Stockholders' Equity 224,038 217,406 213,174
Total Liabilities and Stockholders'
Equity $ 333,820 $ 351,699 $ 330,597
SOURCE The Gymboree Corporation
-0- 05/18/2005
/CONTACT: Investors: Blair W. Lambert, +1-415-278-7933 or
investor_relations@gymboree.com, or Media: Jaclyn Schatzow, +1-415-278-7472 or
media_relations@gymboree.com, both of The Gymboree Corporation/
/Web site: http://www.gymboree.com /