Comparable store sales soar at Gymboree

02 Sep '11

5 min read

Inventory balances at the end of the second quarter were $215.9 million compared to $145.5 million at the end of same period of the prior year. The increase in inventory values primarily reflects higher average unit costs, higher in-transit inventory and higher store count versus the prior year. Excluding in-transit inventory, unit growth on a per square foot basis increased approximately 6%.

Non-GAAP Financial Measures
Adjusted EBITDA is calculated in substantially the same manner as "EBITDA" under the indenture governing the notes and "Consolidated EBITDA" under the agreement governing the Company's senior secured indebtedness. The Company defines "Adjusted EBITDA" as net income (loss) before interest income, interest expense, income tax expense, and depreciation and amortization ("EBITDA") adjusted for other items, including non-cash share-based compensation, loss on disposal/impairment of assets, sponsor management fees and expenses, and loss on extinguishment of debt, as well as the impact of purchase accounting adjustments resulting from the Acquisition.

Adjusted EBITDA is a non-GAAP measure but is considered an important supplemental measure of the Company's performance and is believed to be used frequently by securities analysts, investors and other interested parties in the evaluation of similar retail companies. Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company's computation of Adjusted EBITDA may vary from others in the industry. Adjusted EBITDA should not be considered an alternative to operating income or net income (loss), as a measure of operating performance or cash flow, or as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of July 30, 2011, the Company operated a total of 1,111 retail stores: 636 Gymboree stores (594 in the United States, 39 in Canada, 2 in Australia and 1 in Puerto Rico), 152 Gymboree Outlet stores, 125 Janie and Jack shops and 198 Crazy 8 stores in the United States.

The Gymboree Corporation

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