8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

August 19, 2003

Date of Report

(Date of earliest event reported)

THE GYMBOREE CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware	000-21250	942615258
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

700 Airport Boulevard, Suite 200, Burlingame, CA 94010-1912

(Address of Principal Executive Offices, including Zip Code)

(650) 579-0600

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

TABLE OF CONTENTS

	Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
	Item 9. Regulation FD Disclosure*
	Item 12. Results of Operations and Financial Condition*
SIGNATURE
Exhibit Index
EXHIBIT 99.1
EXHIBIT 99.2

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits

(c)	Exhibits
99.1	Press Release of The Gymboree Corporation issued August 19, 2003.
99.2	Quarterly financial Results for the period ending August 2, 2003.

Item 9. Regulation FD Disclosure*

     On August 19, 2003, The Gymboree Corporation issued a press release announcing its earnings results for the second fiscal quarter ended August 2, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Attached hereto as Exhibit 99.2 are the Company’s quarterly financial results, ending August 2, 2003.

Item 12. Results of Operations and Financial Condition*

     On August 19, 2003, The Gymboree Corporation issued a press release announcing its earnings results for the second fiscal quarter ended August 2, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Attached hereto as Exhibit 99.2 are the Company’s quarterly financial results, ending August 2, 2003.

     *The information furnished under Item 9 and Item 12 of this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE GYMBOREE CORPORATION
Dated: August 19, 2003	By	/s/ Myles B. McCormick
	Myles B. McCormick
	Chief Financial Officer

-3-

Exhibit Index

99.1	Press Release of The Gymboree Corporation issued August 19, 2003.
99.2	Quarterly financial Results for the period ending August 2, 2003.

-4- EX-99.1 3 v92582exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Relations contact:

Myles McCormick

Tel: 650/696-2933

myles_mccormick@gymboree.com

Media Relations contact:

Jennifer Bonzagni Marshall

Tel: 650/373-7637

jennifer_bonzagni@gymboree.com

The Gymboree Corporation Reports Second Quarter 2003 Results

BURLINGAME, Calif., Aug. 19, 2003 – The Gymboree Corporation (NASDAQ: GYMB) today reported a net loss of ($1.1) million or ($0.04) per diluted share for the second fiscal quarter ended August 2, 2003, compared to a net loss of ($1.2) million or ($0.04) per diluted share for the second fiscal quarter ended August 3, 2002.

Net sales from retail operations for the second fiscal quarter of 2003 were $110.4 million, an increase of 5% compared to net sales from retail operations of $105.1 million for the same period last year. Comparable store sales for the second fiscal quarter increased 1%, compared to a 5% increase in comparable store sales for the same period last year. Total net sales, including sales from Gymboree Play & Music operations, were $113.1 million, an increase of 5% compared to total net sales of $108.2 million for the second fiscal quarter last year.

“Our boy business is currently our biggest challenge, as we made some strategic decisions that weren’t successful,” said Lisa Harper, The Gymboree Corporation’s chairman and chief executive officer. “However, our girl and newborn business continues to grow, we’ve made the necessary adjustments to the boy assortment and expect to see the positive results of those efforts in early fourth quarter.”

Business Outlook

As previously stated, The Gymboree Corporation projects that comparable store sales in August will be in the range of flat to negative low single digits compared to the same period last year. It also anticipates comparable store sales in the third fiscal quarter to be

flat to slightly negative compared to the third fiscal quarter of last year. In addition, the Company reconfirmed its earnings guidance for the third and fourth quarters to be in the range of $0.25 to $0.27 and $0.39 to $0.41 per diluted share, respectively. For the full fiscal year, the Company expects earnings per diluted share to be in the range of $0.84 to $0.88.

Management Presentation

The live broadcast of the discussion of second quarter 2003 earnings results will be available to interested parties at 1:30 p.m. PST (4:30 p.m. EST) on Tuesday, August 19. To listen to the live broadcast over the Internet, please log on to gymboree.com, click on “Our Company” at the bottom of the page, go to “Investor and Media Relations” and then “Conference Calls & Web casts.” A replay of the call will be available shortly after the broadcast through midnight EST, August 26, 2003, at 703-925-2533, pass code 6414309, as well as archived on our Web site at the same location as the live Web cast.

About The Gymboree Corporation

The Gymboree Corporation’s specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of August 2, 2003, the Company operated a total of 594 stores: Gymboree^® retail stores (527 in the United States, 27 in Canada, and 24 in Europe) and 16 Janie and Jack^TM retail shops in the United States. The Company also operates online stores at gymboree.com and janieandjack.com, and offers directed parent-child developmental play programs at 538 franchised and company-operated centers in the United States and 25 other countries.

Forward-Looking Statements

The foregoing earnings figures for the second fiscal quarter of 2003 are un-audited and could differ materially from those indicated. The foregoing paragraphs contain forward-looking statements relating to The Gymboree Corporation’s anticipated sales growth and future financial performance. These are forward looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially as a result of a number of factors, including, but not limited to, customer reactions to new merchandise and concepts, service levels, success in meeting our delivery targets, the level of our promotional activity, our gross margin achievement, our ability to appropriately manage inventory, general economic conditions, and competitive market conditions. Other factors that may cause actual results to differ materially include those set forth in the reports that we file from time to time with the Securities and Exchange Commission.

###

EX-99.2 4 v92582exv99w2.htm EXHIBIT 99.2

Exhibit 99.2

THE GYMBOREE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and store data)
(Unaudited)

			13 Weeks Ended						26 Weeks Ended
			August 2,			August 3,			August 2,			August 3,
			2003			2002			2003			2002
Net sales:
	Retail		$	110,356		$	105,079	*	$	246,438		$	234,691	*
	Play & music			2,734			3,169	*		6,107			7,158	*
		Total net sales		113,090			108,248			252,545			241,849
Cost of goods sold, including buying & occupancy expenses				(71,855	)		(66,968)	*		(152,489	)		(143,415)	*
	Gross profit			41,235			41,280			100,056			98,434
Selling, general and administrative expenses				(43,506	)		(43,229)	*		(90,432	)		(90,621)	*
	Operating income (loss)			(2,271	)		(1,949	)		9,624			7,813
Foreign exchange gains				441			139			214			481
Interest income (expense), net				27			(150	)		165			(352	)
	Income (loss) before income taxes			(1,803	)		(1,960	)		10,003			7,942
Income tax benefit (expense)				744			755			(3,801	)		(3,058	)
	Net income (loss)		$	(1,059	)	$	(1,205	)	$	6,202		$	4,884
Net income (loss) per share:
	Basic			($0.04	)		($0.04	)	$	0.21		$	0.17
	Diluted			($0.04	)		($0.04	)	$	0.20		$	0.16
Weighted average shares outstanding:
	Basic			29,552			28,943			29,433			28,869
	Diluted			29,552			28,943			30,723			30,539
Number of stores at end of period				594			571			594			571

     *     Prior year amounts were reclassified to conform to the 2003 presentation.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

		August 2,		February 1,		August 3,
		2003		2003		2002
Current Assets
	Cash and cash equivalents	$	48,440	$	60,628	$	20,114
	Income tax receivable		—		—		16,563
	Accounts receivable		7,943		7,506		6,855
	Merchandise inventories		67,618		62,561		64,151
	Prepaid expenses and deferred taxes		10,624		10,764		9,252
	Total current assets		134,625		141,459		116,935
Property and Equipment, net			104,620		106,464		105,248
Lease Rights, Deferred Taxes and Other Assets			7,303		7,213		5,124
	Total Assets	$	246,548	$	255,136	$	227,307
Current Liabilities
	Current portion of long term debt	$	—	$	—	$	529
	Accounts payable		30,756		27,150		22,160
	Accrued liabilities		17,866		37,570		24,744
	Total current liabilities		48,622		64,720		47,433
Long Term Liabilities
	Long term debt, net of current portion		—		—		8,603
	Deferred rent and other liabilities		20,151		20,998		22,074
Stockholders’ Equity			177,775		169,418		149,197
	Total Liabilities and Stockholders’ Equity	$	246,548	$	255,136	$	227,307

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EX-99.1

exv99w1

EX-99.2

exv99w2