Gymboree Corp. (NASDAQ: GYMB), a specialty retailer offering unique, high-quality products delivered with personalized customer service, recently reported better-than-expected first quarter earnings and a 4% increase in same-store sales. Same-store sales, a key indicator of retailer performance, measures growth at existing stores rather than newly opened ones.
The company’s shares jumped to a new 52-week high on news of the earnings report. Analysts and Wall Street were surprised by the earnings news, since many retailers have recently suffered as consumers cut back due to rising consumer prices and tightening credit. Management attributes the strong quarterly increase to elevated sales for its baby girl, baby boy, kid boy and accessories departments during the quarter.
Comparable store sales for the fiscal quarter increased 4% compared to a 3% increase in comparable store sales for the first quarter of 2007. For the second fiscal quarter, the company expects earnings to be in the range of $0.18 per share to $0.20 per share. For the year, Gymboree Corp. anticipates profits between $3.10 per share and $3.15 per share, while analysts expect earnings per share of $3.04.
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