Feb 8, 2001

Gymboree Reports January Sales

Burlingame, CA, February 8, 2001. The Gymboree Corporation (Nasdaq: GYMB) reported net sales for the five-week period ended February 3, 2001, of $38.2 million, an increase of 74% from sales of $22.0 million for the four-week period last year.

Four-week comparable store sales for the period ended January 27, 2001, increased 38% from the corresponding period last year.

For the 14-week fourth-quarter, net sales were $153.4 million, an increase of 47% over the 13-week fourth quarter last year. Comparable store sales for the quarter increased 40% from the corresponding period last year (13 weeks versus 13 weeks).

Net sales for the 53 weeks ended February 3, 2001, were $448.6 million, an increase of 3% over sales of $437.1 million for the 52-week year ended January 29, 2000. Comparable store sales for the 52-week period ended January 27, 2001, decreased less than 1% compared to last year.

Management indicated that based on a pre-audit review of these sales, the company expects to report fourth-quarter earnings in the range of $0.08 to $0.10 per share, before the after-tax special charge of approximately $0.14 per share associated with the sale of Zutopia.

"Our goal during the fourth quarter was to win back our customers, and our strong sales growth shows we were successful. We are pleased with improvements in store traffic, conversion rates, and units per transaction. We believe that profitability will continue to improve given the lessons learned during this phase of our turnaround," said Lisa Harper, Gymboree’s Vice Chair and Chief Executive Officer.

Ms. Harper indicated that for the first-quarter 2001, Gymboree projects comparable store sales will be up approximately 24% to 28% over first quarter 2000, and earnings per share on a fully diluted basis should fall within a range of $0.06 to $0.08 per share.

Gymboree will report fourth-quarter results after the market close on March 7.

The Gymboree Corporation designs, manufactures and retails unique, high-quality apparel and accessories for children. As of February 3, Gymboree operated 599 stores, including 547 stores in the United States, 20 stores in Canada and 32 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.