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Gymboree Reports April Sales

May 10, 2001 at 12:00 AM EDT
Gymboree Reports April Sales Burlingame, CA, May 10, 2001. The Gymboree Corporation (Nasdaq: GYMB) reported net sales for the four-week period ended May 5, 2001, of $36.1 million, a decrease of (17)% from sales of $43.5 million for the same four-week period last year. Comparable store sales for the period decreased (13)% from the comparable period last year.

Net sales for the first fiscal quarter were $124.0 million, compared with $100.6 in the first quarter last year, an increase of 23%. Comparable store sales for the 13-week quarter increased 25%.

Management indicated that based on a pre-audit review of these sales, the company expects to report first-quarter losses between $(0.01) to $(0.02) per share versus last year’s loss of $(0.56) per share. Gymboree will report first-quarter results after the stock market closes on May 23.

"April’s comparable sales anniversary last year’s heavy promotions and the Easter shift. The softer market environment during April impacted all areas of the business, and produced slightly lower-than-expected sales and lower margin realization," said Lisa Harper Gymboree’s Vice-Chair and Chief Executive Officer. "At this point in our turnaround, we have seen great progress over last year, and we will continue to work to refine the business in all aspects, including merchandise assortment and inventory flow, with heaviest emphasis on operational efficiency."

Ms. Harper indicated that the company expects May comparable store sales in a range of 34% to 38% versus a year ago.

The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of May 5, Gymboree operated 576 stores, including 524 stores in the United States, 21 stores in Canada and 31 in Europe, as well as an online store at www.gymboree.com. The company also offers directed parent-child developmental play programs at more than 440 franchised and company-operated centers in the United States and 21 other countries.

The foregoing November and year-to-date sales figures are unaudited 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 Gymboree’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 and marketing activity, success in meeting our delivery targets, the level of our promotional activity, our ability to maintain appropriate inventory aging, 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.