QUOTE AND NEWS
Clusterstock  Jul 12  Comment 
Gymboree is closing hundreds of stores.  The children's clothing retailer Gymboree, which filed for Chapter 11 bankruptcy protection in June, has confirmed that it will be closing 350 of its 1,281 stores. The closures will affect two other...
CNNMoney.com  Jul 12  Comment 
MarketWatch  Jul 11  Comment 
Gymboree Corp. plans to close about 350 stores as part of its restructuring effort following its chapter 11 bankruptcy filing in June, the children's apparel retailer said late Tuesday. "With the right size store base, the company will be able to...
Motley Fool  Jun 25  Comment 
Good and bad news for the retail industry: Another competitor filed for bankruptcy last week.
Forbes  Jun 13  Comment 
Kids’ clothing retailer Gymboree has turned to bankruptcy for a chance to reorganize and keep open most of its 1,300 stores.
CNNMoney.com  Jun 12  Comment 
Gymboree filed for bankruptcy protections, making it the latest casualty in a long line of troubled retailers.
Wall Street Journal  Jun 12  Comment 
MarketWatch  Jun 2  Comment 
Troubled children's clothing retailer Gymboree elected not to make the interest payment due June 1 on its outstanding 9.125% notes due in 2018, Debtwire has reported. Gymboree is widely expected to file for bankruptcy protection in the near term...
MarketWatch  May 19  Comment 
The bloodletting in the retail sector is expected to create a wave of bankruptcies, debt restructurings and defaults in the next 12 months.
MarketWatch  May 5  Comment 
Gymboree Corp. is looking to close a number of its stores as part of a broader business restructuring under bankruptcy court protection, according to people familiar with the matter.




 

Gymboree Corporation (NASDAQ: GYMB) is comprised of a family of specialty retail brands. The company currently operates 953 retail stores targeting the children's specialty apparel industry with their Gymboree, Gymboree Outlet, Janie and Jack, and Crazy 8 stores, as well as online sales of those brands (excluding Gymboree Outlet).[1] Gymboree Corporation also has the Gymboree Play & Music brand, a concept focusing on developmental play, music and arts classes for children (infant to five years) and their parents; there are approximately 559 centers in the United States and 31 other countries.

Company Overview

Gymboree Corporation began with the Gymboree Play & Music concept in 1976. They entered the apparel business in 1986, with the goals of producing unique, high-quality newborn and children's apparel. The company had its Initial Public Offering in March 1993. Gymboree has developed a number of new retail concepts since 2002, including Janie and Jack (2002), Gymboree Outlet (2005), Crazy 8 (2007), and Janeville (2004, was closed down in 2006).

Business Financials

In 2010 (GYMB's fiscal year ends January 31 of each year), GYMB earned a total of $1.01 billion in total revenues. This was virtually the same as its previous year's earnings of $1.00 billion in 2009. As a result of its revenues increasing, GYMB's net income increased from $93 million in 2009 to $102 million in 2010.

Business Segments

Gymboree's sales come from two reportable segments: Retail, which includes Gymboree brand clothing stores as well as others, and Music and Play.

Retail Apparel Shops

Approximately 30% of Gymboree's net sales from retail operations occur during the fourth quarter of each year, primarily during the holiday season (November - December). All stores, with the exception of Gymboree Outlet, have an online sales presence as well as traditional B&M shops.

Brands include:

  • Gymboree Stores (and online store)
  • Gymboree Outlet
  • Janie and Jack (and online store)
  • Crazy 8 (and online store)

Gymboree had previously ventured into adult women's retail with the Janeville brand in 2004, but closed the unsuccessful concept in 2006.

Gymboree

Gymboree's original clothing retail shop was launched in 1986. Gymboree's clothing lines aim for high-quality manufacturing, with the inclusion of bright coloring and patterns which appeal to the age range they serve, newborn - 12 years. Clothing lines are brought out often, and are designed to be mixed and matched within the line, offering the opportunity to purchase clothing pieces which can be used in many different outfits. The Gymboree stores also use promotions such as "Friends and Family" on certain days of the year, and Gymbucks, which is a loyalty program where, when clothing is purchased during certain times, the customer is given a coupon for a dollar amount off their next purchase (during a redemption period).

Gymboree Outlet

Gymboree outlets offer clothing similar in style and age-ranges as Gymboree stores, but at outlet pricing.

Janie and Jack

Janie and Jack shops are differentiated from Gymboree's other retail apparel shops in that the clothing offered is more distinctive, sometimes with a more natural feel, and with even higher-quality manufacturing and materials. The clothing prices in these shops skews higher than those of the Gymboree stores, and is designed for boys and girls, ages newborn through 8. The stores themselves have a vintage feel, with distressed wooden floors, giving the stores a boutique feel.

Crazy 8

Crazy 8 is Gymboree's newest retail concept, launched in August 2007, with price points approximately 30% lower than those of Gymboree, thereby reaching a broader demographic of customer. However, the retail shop itself still presents in an upscale fashion. The clothing offered is for boys and girls in sizes newborn - 14.

Music and Play

Gymboree Music & Play offers developmental play, music, and arts classes for parents and children to attend together, and are designed for children in the newborn to age 5 range. Launched in 1979, there are currently 541 Music & Play centers worldwide.

The majority of Gymboree Play & Music centers are franchisee-operated; of 559 centers, as only 3 of the 559 centers were company-owned in California. Of the remaining 556 centers, 48% were located in the United States, and 52% were located in 29 other countries.

Competition

The retail brands of Gymboree compete with a number of other established players in the children's apparel industry. Competitive brands on the national level include BabyGap, GapKids, and Old Navy (all divisions of Gap), Children's Place Retail Stores , and discount department store chains such as Target, Wal-Mart Stores, and Kohl's. The Gymboree, Janie and Jack and Crazy 8 brands also compete with local specialty children's stores, mall department stores, and other retail chains. Additionally, non-retail methods of sales, including online and mail-order catalogs, compete with Gymboree's retail divisions for business.

The Play and Music segment faces competition as well, although the players in this industry as nowhere near as well-established as Gymboree's competitors in the retail sector. The children's fitness sector is primarily populated by franchised stores such as The Little Gym, although many franchises are focused on age groups that skew older than those targeted by Gymboree Play and Music. Additionally, other types of competition in this market include city, county, or regional programs offered by Recreations Departments, or through the YMCA; many fitness classes are offered for the parent and child. The current popularity of Yoga has also spawned classes in many studios for the young child and parent to attend together, and as with the other types of competition mentioned, most of this competition is more localized and/or independent rather than being at a national level.




References

  1. GYMB 10-K 2010 Item 1 Pg. 4
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