(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 per share came in above analysts' as well as its own expectations. The company also reiterated its earnings outlook for the second quarter and 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 while reporting a 4% increase in same-store sales for the quarter.
Operating income for the quarter rose 24% 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 grew 16% to $238.9 million in the first quarter from $206.7 million in the prior year quarter.
As of May 3, the company operated a total of 811 retail stores, including 604 Gymboree stores in the United States and Canada, 96 Gymboree Outlet stores, 95 Janie and Jack shops and 16 Crazy 8 stores in the United States.
Commenting on first quarter results, 'I am very pleased with our financial performance in the first quarter,' said Matthew McCauley, Gymboree's Chairman and Chief Executive Officer. 'Despite the challenging retail environment, we were able to deliver close to a 30% increase in earnings per share.'
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. Earlier this month, the company had increased its full year 2008 earnings guidance to a range of $3.10 to $3.15 per share from its prior guidance of $3.00 to $3.05 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.
Among others in the industry, Talbots Inc.
(TLB) earlier Wednesday reported net income of $1.64 million or $0.03 per share for the first quarter, down from $5.24 million or $0.10 per share in the year-ago quarter.
Adjusted net income from ongoing core operations increased to $11.0 million or $0.21 per share in the first quarter from $7.29 million, or $0.14 per share a year ago.
Talbots's sales for the quarter declined to $542 million from $573.56 million in the same quarter last year.
Gymboree shares, which have traded in a range of $25.29 to $47.69 over the past year, closed Wednesday's regular trading session at $43.77, down 67 cents or 1.51% and lost an additional 58 cents or 1.33% in after hours trading.
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