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Gymboree notches up solid Q2 results

Gymboree reported better-than-expected second quarter results for both sales and profit.

Net sales at the US children’s clothing retailer increased by 5% to $215.4m (£130.2m) in the three months to August 1, although like-for-like sales were down 1%. Earnings rose 53% on the same quarter in 2008, at $12.2m (£7.4m).

Gymboree, which has just brought its Crazy 8 brand to the UK via a deal with Adams, increased sales through a combination of promotions and an increasingly fashion-led product mix.

Susquehanna Financial Group analyst Thomas Filandro told Reuters: “Gymboree has done a fantastic job of creating value-centric propositions.”

He said that further growth was particularly likely for Crazy 8, which is a new line for Gymboree and has a price point that is on average 30% lower than the mainline. Filandro added: “Crazy 8 is gaining some real brand traction.”

For the third fiscal quarter of 2009, Gymboree expects a low single digit decrease in comparable store sales versus the same period of the prior year.

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