EXHIBIT 99.1
INVESTOR RELATIONS CONTACT:
Jeff Harris
Tel: 415-278-7933
investor_relations@gymboree.com
MEDIA RELATIONS CONTACT:
Jamie Falkowski
Tel: 415-278-7942
media_relations@gymboree.com
THE GYMBOREE CORPORATION REPORTS OCTOBER AND THIRD QUARTER SALES
San Francisco, Calif., November 2, 2006 - The Gymboree Corporation (NASDAQ:
GYMB) reported net sales from retail operations for the four-week period ended
October 28, 2006 of $73.7 million, an increase of 17% compared to net sales from
retail operations of $63.1 million for the same four-week period last year.
Comparable store sales for the four-week period increased 10% compared to an 18%
increase in comparable store sales for the same period last year.
Net sales from retail operations for the third fiscal quarter of 2006 were
$212.9 million, an increase of 22% compared to net sales from retail operations
of $174.5 million for the third fiscal quarter of last year. Comparable store
sales for the third fiscal quarter increased 16% compared to a 10% increase in
comparable store sales for the same period in fiscal 2005.
The Company previously announced that it plans to close its Janeville division
by the end of the current fiscal year. Incremental costs and lower gross margin
associated with the closure are anticipated to reduce earnings per diluted share
by approximately $0.20 in the third fiscal quarter and $0.07 in the fourth
fiscal quarter of 2006.
Excluding the incremental costs and reduced gross margin related to the closure
of the Janeville division, the Company now expects earnings per diluted share
for the third fiscal quarter and full year 2006 to be in the range of $0.67 to
$0.69 and $1.81 to $1.84, respectively. This represents an increase of fourteen
cents from previous Company guidance.
After allowing for costs associated with the closure of the Janeville division,
the Company now anticipates earnings for the third fiscal quarter of 2006 to be
in the range of $0.47 to $0.49 per diluted share, reflecting a $0.20
Janeville-related charge. For the full fiscal year, the Company expects earnings
in the range of $1.54 to $1.57 per diluted share, including $0.27 of incremental
costs and reduced gross margin associated with the closure of Janeville.
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 2 at 7:55 a.m. ET through Wednesday, November 8 at 11:59 p.m. PT.
The live broadcast of the discussion of third quarter 2006 financial results
will be available to interested parties at 1:30 p.m. PT (4:30 p.m. ET) on
Wednesday, November 15, 2006. 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 PT, Wednesday, November 22, 2006, at 800-642-1687.
ABOUT THE GYMBOREE CORPORATION
The Gymboree Corporation's specialty retail brands offer unique, high-quality
products delivered with personalized customer service. As of October 28, 2006,
the Company operated a total of 709 stores: 577 Gymboree(R) retail stores (549
in the United States and 28 in Canada), 37 Gymboree Outlet stores, 78 Janie and
Jack(R) retail shops and 17 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 550 franchised and company-operated centers in the United States and
27 other countries.
FORWARD-LOOKING STATEMENTS
The foregoing sales figures for the four-week period and third fiscal quarter
ended October 28, 2006, as well as the expected financial effects of the closure
of Janeville operations, 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 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, unanticipated costs
incurred in connection with the closure of the Janeville division, 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 28, 2006. These
forward-looking statements reflect The Gymboree Corporation's expectations as of
October 28, 2006. The Gymboree Corporation undertakes no obligation to update
the information provided herein.
Gymboree, Janie and Jack, and Janeville are registered trademarks of The
Gymboree Corporation.
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