Gymboree Posts Narrower Loss
Gymboree Corp. said its second-quarter loss narrowed from a year earlier, but it forecast third-quarter earnings from continuing operations below Wall Street analysts’ average estimate.
Shares of the San Francisco-based children’s apparel retailer company lost 97 cents to $15.68 in after-hours trading after slipping 36 cents to $16.65 in regular trading.
It forecast fiscal third-quarter income from continuing operations in the range of 20 cents to 22 cents a share, below analysts’ average estimate of 25 cents a share. Its full-year outlook calls for profit from continuing operations in the range of 55 cents to 60 cents a share. Analysts are expecting earnings of about 57 cents.
In the just-concluded second quarter, Gymboree lost $3.3 million, or 11 cents a share, compared with a deficit of $3.9 million, or 13 cents, in the year-earlier period. The company’s loss from continuing operations was 12 cents a share, as it was in the year-earlier quarter. On that basis, Wall Street analysts had been expecting a loss of 16 cents a share. Sales rose 13.8% to $132 million as sales in its retail and play and music divisions posted gains.