Gymboree Corp. (GYMB) shares were up more than 5% in after-hours trading Wednesday, after the company posted fourth-quarter results that beat expectations and gave first-quarter guidance that topped estimates.
The company also announced it had entered into a multi-year franchise deal with a subsidiary of Azadea Group Holding SAL, to launch Gymboree retail locations in the Middle East, with the first stores scheduled to open in Dubai in the third quarter of fiscal 2010.
The children’s apparel retailer forecast first-quarter earnings in the range of 90 to 94 cents a share on same-store sales growth in the mid-single digits. Analysts had projected earnings of 90 cents, according to a poll by Thomson Reuters.
For the fourth quarter, Gymboree saw profit rise to $33.2 million or $1.11 a share, up compared to year-ago earnings of $29.5 million or $1.00 a share. Profit beat expectations; analysts had expected earnings of $1.10 a share.
Sales rose 3.8% to $299.6 million, up from year-ago total sales of $288.7 million.
Shares of Gymboree rose $1.00 or 2.21% in Wednesday’s session to close at $46.29 a share. The stock gained another $2.60 or 5.62% in after-hours trading following the release of fourth-quarter results.
