Gymboree boosts 1Q, 2008 guidance on strong sales

SAN FRANCISCO—Children's clothing retailer Gymboree Corp. on Thursday boosted its first quarter and fiscal year profit guidance due to higher-than-expected quarterly sales.

The company said total sales for the thirteen weeks ended May 3 rose 16 percent to $238.9 million, from $206.7 million in the first quarter of 2007. Analysts polled by Thomson Financial, on average, expected quarterly revenue of $236 million.

Same-store sales, or sales at stores open at least a year, rose 4 percent.

Same-store sales is a key indicator of retailer performance, since it measures growth at existing stores rather than newly opened ones.

The company said its baby girl, baby boy, kid boy and accessories departments performed well in the quarter.

Gymboree said based on its strong sales performance, it now expects profit between 83 cents and 85 cents per share for the quarter. Previously, the company expected earnings of 73 to 75 cents per share.

Analysts anticipate profit of 76 cents per share.

For the year, the company said it now expects profit between $3.10 and $3.15 per share. The company had predicted profit of $3 to $3.05 per share.

Analysts expect earnings per share of $3.04 for the year.

The company also offered second quarter guidance for profit between 18 cents and 20 cents per share.

Analysts see profit of 21 cents per share.