Gymboree Corporation’s Q1 net sales dip

SAN FRANCISCO — The Gymboree Corporation is looking to leverage the rebounding economy and trends for the rest of 2013, following a dip in its net sales for the first quarter ended May 4.

The company reported net sales of $293 million for the quarter, a 1.7% decrease from $298 million for the first quarter ended April 28, 2012. Comparable sales for the quarter decreased 5% versus the first quarter of the year prior.

The company’s gross profit for the quarter was $121 million, or 41.3% of net sales, compared to $121.8 million, or 40.9% of net sales, for the first quarter of the year prior. Adjusted gross profit, which excludes $2.6 million for the first quarter this year and $3 million for the first quarter of fiscal 2012, respectively, relating to the company’s acquisition on Nov. 2010 by Giraffe Holding, was $123.6 million, or 42.2% of net sales, for the quarter, compare to $124.8 million, or 41.9% of net sales, for the first quarter of the year prior. Giraffe Holding, Inc. is an entity controlled by investment funds sponsored by Bain Capital Partners.

The company says it is focused on improving its inventory discipline, strengthening its product assortment and continuing to drive its growth opportunities of real estate, e-commerce and international. It plans to open approximately 100 new stores, with the majority being Crazy 8 stores.

The Gymboree Corporation operates 634 Gymboree stores (584 in the United States, 43 in Canada, 1 in Puerto Rico and 6 in Australia), 160 Gymboree Outlet stores (158 in the United States, 2 in Puerto Rico), 134 Janie and Jack shops and 352 Crazy 8 stores in the United States, as well as its e-commerce sites. It also offers directed parent-child developmental play programs at 718 franchised and company-operated Gymboree Play & Music centers in the United States and 42 other countries.