Gymboree’s Profit Falls Sharply
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Children’s apparel retailer Gymboree Corp. said Tuesday that its third-quarter earnings fell sharply as fierce competition with rivals forced it to cut prices, which bit into profit margins.
Net income for the quarter ended Oct. 30 was $5.5 million, or 18 cents a share. In the year-earlier period, Gymboree earned $8.3 million, or 27 cents.
The results included a one-time tax benefit of 11 cents a share that was offset by a loss in the same amount at the company’s discontinued British and Irish businesses.
Earnings from continuing operations, which include the tax benefit, were 28 cents a share for the quarter.
For the current quarter, Gymboree forecast profit from continuing operations of 25 cents to 30 cents a share, excluding a charge related to moving its headquarters to San Francisco from Burlingame, Calif. On that basis, analysts are expecting earnings of about 29 cents, according to Reuters Estimates.
The company said that it expected a loss of 14 cents to 16 cents a share for discontinued operations in the fourth quarter.
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