The Gymboree Corporation reports positive Q1, reaffirms guidance

By

Obi Anyanwu

Published
Jun 14, 2016

The Gymboree Corporation reported on Monday its financial results for the first quarter of fiscal 2016 ended April 30, 2016.

 
Net sales increased to $285 million from $276.1 million in the prior year and comparable sales including online stores increased 4% compared to the first quarter of 2015. The Gymboree namesake brand’s comparable sales for the quarter were up 6%, Janie and Jack comparable sales were positive 5% and Crazy 8 was down 2%.
 
Adjusted gross profit for the quarter was $118 million, or 41.4% of net sales, compared to $107.1 million, or 38.8% of net sales. Adjusted SG&A expense was $105.4 million, or 37% of net sales, versus $101.1 million, or 36.6% of net sales, and net income was $32.8 million, including a gain on extinguishment of debt of $48.8 million, compared to a net loss of $23 million in the previous first quarter.

For the second quarter, Gymboree anticipates its adjusted EBITDA to range from $13 million to $17 million and its full year adjusted EBITDA to be in range of $120 million and $135 million. The company also plans to open 6 new stores this year and close 20 to 30 stores.
 
The Gymboree Corporation brand portfolio includes its namesake brand, Janie and Jack, Crazy 8 and Gymboree Play & Music. The San Francisco-based children’s clothing company was founded in 1976 and today operates 1,303 retail stores in the United States, Canada and Puerto Rico.