Gymboree net loss declines, sales grow

Gymboree increased same store sales and profit in the second quarter, but the kids' retailer still plans to close dozens of stores and sell a distribution center.

For the second quarter ended Aug. 1, Gymboree reported net Sales of $273.5 million, an increase of 3.5% compared to the second quarter of fiscal 2014. Same storesales (including online sales) increased 2%.Gross profit was $100.7 million, or 36.8% of net sales, compared to $96.4 million, or 36.5% of net sales, for the second quarter of fiscal 2014. And adjustednet loss was $11.1 million compared to $9.6 million for the second quarter of fiscal 2014, an increase of $1.5 million.

The company said the losswas negatively impacted by approximately $5 million as a result of receipt flow disruption driven by the west coast port slowdown.

As previously announced, the company has entered into an agreement to sell and lease-back its distribution center located in Dixon, California. Net proceeds received from the sale were $25.9 million of which approximately $10.9 million were restricted to fund capital expenditures or reduce the Company's liability under the Term loan.

For the full year, the company continues to expect Adjusted EBITDA to be in the range of $95 million to $105 million.

During fiscal 2015, the company continues to plan to open approximately 12 stores and expects to close approximately 30 to 40 stores.