Gymboree posts surprisingly good Q2 results
Children’s retailer The Gymboree Corp. (Nasdaq:GYMB) reported strong second-quarter results after Wednesday’s close that surprised Wall Street. Comparable store sales rose 1% in the second fiscal quarter. Results were helped by higher reported gross margins due to streamlining costs associated with product manufacture.
“GYMB continued to offset the negative trend in the average transaction value, successfully attracting new to file shoppers, driving increases in average store transactions,” Susquehanna Financial analyst Thomas A. Filandro wrote in a research note today. “Over the near term, management is focused on margin recovery as opposed to comp growth… Operating margins are expected to rise due to store payroll efficiencies and product cost reductions across the family of brands.”
Going forward, the company issued guidance below to inline with the Street for the third quarter and full year.
Shares slipped 0.88%, or $0.32 to $36.25 out of the gate. For more detailed price information and stories on The Gymboree Corp., click GYMB.
