Exhibit 99.1
THE GYMBOREE CORPORATION REPORTS OCTOBER AND THIRD QUARTER SALES AND ANNOUNCES
SHARE REPURCHASE PROGRAM
SAN FRANCISCO, Nov. 3 /PRNewswire-FirstCall/ -- The Gymboree Corporation
(Nasdaq: GYMB) reported net sales from retail operations for the four-week
period ended October 29, 2005 of $63.1 million, an increase of 23% compared to
net sales from continuing retail operations of $51.3 million for the same
four-week period last year. Comparable store sales for the four-week period
increased 18% compared to a 3% increase in comparable store sales for the same
period last year.
Net sales from retail operations for the third fiscal quarter of 2005 were
$174.5 million, an increase of 14% compared to net sales from continuing retail
operations of $152.8 million for the same period last year. Comparable store
sales for the third fiscal quarter increased 10% compared to the same period
last year.
The Company now expects earnings from continuing operations for the third
fiscal quarter of 2005 to be in the range of $0.35 to $0.37 per diluted share.
For the fourth fiscal quarter of 2005, the Company now expects earnings from
continuing operations to be in the range of $0.37 to $0.39 per diluted share.
For the full fiscal year 2005, the Company anticipates that its earnings per
diluted share from continuing operations will be in the range of $0.77 to $0.81.
Comparable store sales are expected to increase for the fourth quarter of fiscal
2005 in the range of low to mid single digits.
Board Authorizes Share Repurchase
The Company also announced that its Board of Directors has authorized the
Company to utilize up to $55 million of the Company's cash reserves to purchase
shares of the Company's outstanding common stock. Purchases will be made from
time to time on the open market or in privately negotiated transactions.
Depending on market conditions and other factors, purchases under this program
may be commenced or suspended without prior notice at any time, or from time to
time, through October 28, 2006. At current price levels, approximately 10% of
the Company's outstanding shares could be repurchased under this program.
Lisa Harper, Chairman and Chief Executive Officer, commented, "Repurchases
of our common stock will provide additional value to our stockholders. The
Board's action is a reflection of the Company's strong position and cash flow,
which the Board believes is sufficient to support the Company strategies for
continued growth of its businesses in addition to the share repurchases under
this program."
Management Presentations
For more information about October sales, please listen to The Gymboree
Corporation's monthly sales recording by calling the Company's Investor
Relations Hotline at 415-278-7933. The recording will be available Thursday,
November 3 at 7:55 a.m. ET through Wednesday, November 9 at 11:59 p.m. PT.
About The Gymboree Corporation
The Gymboree Corporation's specialty retail brands offer unique,
high-quality products delivered with personalized customer service. As of
October 29, 2005, the Company operated a total of 663 stores: 574 Gymboree(R)
retail stores (546 in the United States and 28 in Canada), 11 Gymboree Outlet
retail stores, 62 Janie and Jack(R) retail shops and 16 Janeville(R) stores in
the United States. The Company also operates online stores at www.gymboree.com
and www.janieandjack.com, and offers directed parent-child developmental play
programs at 522 franchised and company-operated centers in the United States and
24 other countries.
Forward-Looking Statements
The foregoing sales figures for the four-week period and quarter ended
October 29, 2005, are 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 share repurchase program, anticipated sales growth
and cash flows 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, effects of future embargos from countries used to source
product, 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
October 29, 2005. The Gymboree Corporation undertakes no obligation to update
the information provided herein.
NOTE: Gymboree, Janie and Jack and Janeville are registered trademarks of
The Gymboree Corporation.
SOURCE The Gymboree Corporation
-0- 11/03/2005
/CONTACT: investors, Blair W. Lambert, +1-415-278-7933, or
investor_relations@gymboree.com, or media, Kimberly Kim, +1-415-278-7472, or
media_relations@gymboree.com, both of The Gymboree Corporation/
/Web site: http://www.gymboree.com /
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