Gymboree profit jumps, announces expansion plans

San Francisco The Gymboree Corp. said Wednesday its profit rose 13% in the fourth quarter, as higher sales helped to boost results.

The company also outlined a plan to open up to 50 stores throughout the Middle East over the next five years.

Gymboree said it earned $33.2 million in the period ended Jan. 31, compared with a profit of $29.5 million in the year-ago period.

Revenue rose 4% to $299.6 million, up from $288.7 million last year.

For the full year, Gymboree made $101.9 million, compared with a profit of $93.5 million the prior year. Revenue rose slightly to just over $1 billion.

Gymboree also outlined an expansion plan for the Middle East. The company said it has entered into a franchise deal with retailer Azadea G Group Limited, a subsidiary of Azadea Group Holding SAL, to launch the Gymboree retail brand in that region.

The first stores are scheduled to open in Dubai sometime in the fall.

Gymboree CEO Matthew McCauley, in a conference call with investors, said "our vision is to reach every mom in America and moms around the world."

He said the company could eventually open up to 50 stores throughout the Middle East, in places such as Saudi Arabia and the United Arab Emirates, over the next five years.

At the end of February, the company operated a total of 960 retail stores under its various brand names.