Burlingame, CA, January 4, 2001. The Gymboree Corporation (Nasdaq: GYMB) reported net sales for the five-week period ended December 30, 2000, of $68.2 million, an increase of 45% from sales of $47.0 million for the same period last year. Comparable store sales for the five-week period increased 45% compared to the same period last year.
Net sales for the 48 weeks ended December 30, 2000, were $410.4 million, a decrease of 1% from sales of $415.1 million for the same period last year. Comparable store sales for the period decreased 3% compared to last year.
"We are very pleased with both the continued strong positive customer response to our merchandise and the knowledge gained during the recent rebound in our business, which will enable us to begin to move gross profit rates toward historically higher levels," said Stuart Moldaw, Gymboree’s Chairman and Chief Executive Officer.
Mr. Moldaw indicated the following expectations for Gymboree’s future performance:
The company now expects total fourth-quarter comparable store sales to be up 44% to 47% versus last year, versus the previously stated 35% to 40%. (This guidance is based on the full 14-week quarter compared to the 13-week quarter of fiscal 1999, an event which happens every fifth year. Excluding the extra week, the quarter’s comparable store sales increase would be in the range of 38% to 41%.)
Gymboree now expects gross profit at the low end of previous guidance, or approximately 200 basis points better than last year.
The higher-than-previously-forecast sales will drive higher sales-related expenses during the quarter. Consequently, Gymboree expects SG&A expense to be approximately $50 million versus the previous expectation of approximately $48 million. This excludes the one-time impact of the charge related to the sale of Zutopia stores reported earlier today.
Gymboree will report January and full-year sales on February 8, and will report fourth-quarter results on March 8.
The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of December 30, 2000, Gymboree operated 601 stores, including 549 stores in the United States, 20 stores in Canada and 32 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 430 franchised and company-operated centers in the United States and 15 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.