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By
Reuters
Published
Nov 5, 2009
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Gymboree third quarter same-store sales disappoints Wall Street

By
Reuters
Published
Nov 5, 2009

Nov 5 (Reuters) - Gymboree Corp (GYMB.O) posted a bigger decline in third-quarter same-store sales than what the market expected, but the children's clothing retailer raised its third-quarter profit view for the second time in two months.


Gymboree Corp - Photo: www.gymboree.com

Gymboree posted a same store sales decline of 4 percent, while Wall Street analysts were expecting a 2.9 percent fall, according to Thomson Reuters data.

The company said third-quarter profit was boosted by better expense control and improvement in gross margins.

The retailer, which caters to newborns to 12-year-olds, now expects to earn between $1.10 and $1.13 a share for the third quarter.

Analysts on average were looking for a profit of $1.10 a share, before items, according to Thomson Reuters I/B/E/S.

In October, the company had raised its third-quarter forecast to a profit of between 1.05 and $1.10 a share, from its previous outlook for the period.

Rival Children's Place Retail Stores Inc (PLCE.O) posted a smaller-than-expected dip in October same store sales.

Shares of the San Francisco-based retailer were down 9 percent at $38.58 Thursday (5 November) morning on the New York Stock Exchange. (Reporting by Vidya Lakshmi and Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy)

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