EXHIBIT 99.1
INVESTOR RELATIONS CONTACT:
Jeffrey P. 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 JANUARY AND FOURTH QUARTER SALES
San Francisco, Calif., February 8, 2007 - The Gymboree Corporation (NASDAQ:
GYMB) reported net sales from continuing retail operations for the five-week
period ended February 3, 2007, of $62.5 million, an increase of 24% compared to
net sales from continuing retail operations of $50.6 million for the four-week
period ended January 28, 2006. Comparable store sales for the five-week period
were flat to the equivalent five-week period in the prior year. The results
follow a 2% increase in comparable store sales for the four-week period last
year.
Net sales from continuing retail operations for the fourth fiscal quarter of
2006 were $238.5 million, an increase of 19% compared to net sales from
continuing retail operations of $200.3 million for the fourth fiscal quarter of
last year. Comparable store sales for the fourth fiscal quarter increased 7%
compared to a 14% increase in comparable store sales for the same period in
fiscal 2005.
During the quarter, the Company completed the closure of all 17 Janeville
division retail locations. The Company anticipates fourth quarter incremental
costs and lower gross margin associated with the division's closure will be
approximately $3.4 million before tax or $0.06 per diluted share. The Company
now anticipates the total incremental impact of the closure of Janeville on full
year 2006 earnings will be approximately $13.6 million before tax, or
approximately $0.25 per diluted share.
Excluding the incremental costs and reduced gross margin related to the closure
of the Janeville division, the Company continues to expect earnings per diluted
share for the fourth fiscal quarter and full year 2006 to be in the range of
$0.70 to $0.72 and $1.97 to $1.99, respectively.
Including the costs associated with the closure of the Janeville division, the
Company now anticipates earnings for the fourth fiscal quarter of 2006 to be in
the range of $0.64 to $0.66 per diluted share, reflecting a $0.06
Janeville-related charge. For the full fiscal year, the Company expects earnings
in the range of $1.72 to $1.74 per diluted share, including $0.25 of incremental
costs and reduced gross margin associated with the closure of Janeville.
MANAGEMENT PRESENTATIONS
For more information about January 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,
February 8 at 7:55 a.m. ET through Wednesday, February 14 at 11:59 p.m. PT.
The live broadcast of the discussion of fourth quarter 2006 financial results
will be available to interested parties at 1:30 p.m. PT (4:30 p.m. ET) on
Tuesday, March 13, 2007. 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, March 21, 2007, at 800-642-1687.
The Gymboree Corporation's specialty retail brands offer unique,
high-quality products delivered with personalized customer service. As of
February 3, 2007, the Company operated a total of 698 retail stores: 575
Gymboree(R) stores (547 in the United States and 28 in Canada), 42 Gymboree
Outlet stores and 81 Janie and Jack(R) shops 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 548 franchised and
company-operated centers in the United States and 29 other countries.
FORWARD-LOOKING STATEMENTS
The foregoing sales figures for the five-week period ended February 3,
2007, and fourth fiscal quarter, as well as expected charges relating to the
closure of the Janeville division, 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 and costs related
to the closing of the Janeville division. 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 actually 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 February 3,
2007. 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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