Earnings Preview: Gymboree

| About: Gymboree Corp. (GYMB)
Gymboree (NASDAQ:GYMB) is expected to report Q4 earnings Wednesday with a conference call scheduled for 4:30 p.m. ET.


Analysts are looking for a profit of 95c on revenue of $277.89M. The consensus range is 94c to 96c for EPS, and revenue of $275.5M to $278.7, according to First Call. The company recently reported its same store sales rose 10% in the quarter and said sales were $275.5M. Due to the positive SSS, the company raised its Q4 EPS estimate by 5c, to between 93c and 95c per share. Gymboree also sees 2007 EPS of $2.69 to $2.71 vs. First Call consensus of $2.65, sees Q1 SSS growth in the low single digits, sees Q1 EPS 73c to 75c vs. First Call consensus of 76c and sees 2008 EPS $3.00 to $3.05 vs. First Call consensus of $2.99.

CEO Matthew McCauley said in a statement that Gymboree continued to see strong customer response to its product assortments throughout the month of January.

Analyst Views

On March 5, S&P Equity Research analysts upgraded the Consumer Discretionary Sector to Market Weight from Underweight, reflecting the firm's belief that a a mild U.S. recession is now largely discounted into Consumer Discretionary sector valuations and profit outlook. A long period of under-performance has left the sector with what we see as an attractive P/E-to-growth profile. Wedbush, which has a Buy rating on shares, believes the company's business remains on track and maintains a $45 target price.