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Gymboree Reports March Sales

April 12, 2001 at 12:00 AM EDT
Gymboree Reports March Sales Burlingame, CA, April 12, 2001. The Gymboree Corporation (Nasdaq: GYMB) reported net sales for the five-week period ended April 7, 2001, of $50.3 million, an increase of 49% from sales of $33.9 million for the five-week period last year. Comparable store sales for the five-week period increased 52% from the same period last year.

Net sales for the 9 weeks ended April 7, 2001, were $87.9 million, an increase of 54% over sales of $57.2 million for the 9 weeks ended April 1, 2000. Comparable store sales for the period increased 52% compared to last year.

"We are pleased with the March results, as evidenced by strong comparable store sales achieved at strong margins. Although we achieved our sales plan in the first two months of the quarter, we have not yet realized the traditional sales increase prior to the Easter holiday. If the trend of the last few days continues, we would have to adjust our earnings expectation for the quarter to $0.01 to $0.03 per share versus the loss of $0.56 per share posted last year," said Lisa Harper, Gymboree’s Vice-Chair and Chief Executive Officer.

"We are very comfortable with our inventory levels, promotional levels and our fashion selection, and are poised to respond to the current market conditions as necessary. Our projected April comparable store sales decline of (7)% to (10)% versus an increase of 19% in April 2000 reflects both the shift in Easter and last year’s deep discounting during the month," Ms. Harper said.

During March, the transfer of Zutopia stores to The Wet Seal, Inc. was completed.

The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of April 7, Gymboree operated 579 stores, including 527 stores in the United States, 21 stores in Canada and 31 in Europe, as well as an online store at The company also offers directed parent-child developmental play programs at more than 440 franchised and company-operated centers in the United States and 16 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.