Gymboree Q1 earnings rise, top estimate

Posted on Wednesday, May 21, 2008 4:57 PM

(RTTNews) - Kids apparel retailer Gymboree Corp. (GYMB) said Wednesday after the markets closed that first quarter earnings rose 20% from last year, as retail sales grew 16%. The company's quarterly earnings for share came in above analysts' expectations. The company also reiterated its outlook for the second quarter anf full year 2008. The San Francisco-based company reported net income of $25.0 million or $0.86 per share for the first quarter, compared to $20.9 million or $0.67 per share for the year-ago quarter. On average, 9 analysts polled by First Call / Thomson Financial expected the company to earn $0.84 per share for the first quarter. Earlier this month, the company had raised its first quarter earnings outlook to a range of $0.83 to $0.85 per share following strong same-store sales growth in the quarter. Operating income for the quarter rose to $41.6 million from $33.6 million a year ago. Total sales for the first quarter increased 16% to $242.10 million from $209.30 million in the same quarter last year. Seven analysts had a consensus revenue estimate of $240.04 million for the first quarter. sales from retail operations for the quarter grew 16% to $238.9 million from $206.7 million in the prior year quarter. Looking forward, the company said it continues to expect second quarter earnings to be in the range of $0.18 to $0.20 per share. The company expects second quarter same-store sales to grow in low single digit. The company also reiterated its full year 2008 earnings guidance of $3.10 to $3.15 per share. Analysts currently expect the company to earn $0.21 per share for the second quarter and $3.12 per share for the full year 2008. Gymboree shares closed Wednesday's regular trading session at $43.77, down 67 cents or 1.51% and lost an additional 57 cents or 1.30% in after hours trading. For comments and feedback: contact editorial@rttnews.com