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By
Reuters
Published
May 20, 2009
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Gymboree Q1 profit beats estimates

By
Reuters
Published
May 20, 2009


May 20 (Reuters) - Children's clothing retailer Gymboree Corp (GYMB.O) posted a first-quarter profit above analysts' estimates, helped by lower product costs and operating expenses.

The company, which operates Janie and Jack stores as well as its namesake chain, earned $21.8 million, or 74 cents a share, compared with $25.0 million, or 86 cents a share, a year earlier.

Analysts were expecting earnings of 67 cents a share, before special items, according to Reuters Estimates.

Selling, general and administrative expenses at the company, which had late last year implemented salary reductions for its senior staff, fell about 10 percent to $73.3 million in the quarter.

For the second quarter, the company, whose rivals include Talbots Inc (TLB.N), Children's Place (PLCE.O) and Gap Inc (GPS.N), sees earnings of 9 cents to 14 cents a share. Analysts were expecting a profit of 11 cents a share for the period.

Shares of San Francisco-based Gymboree closed at $36.14 Wednesday on Nasdaq. (Reporting by Amitha Rajan in Bangalore; Editing by Anil D'Silva)

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