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By
Reuters
Published
Oct 8, 2009
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Gymboree raises third quarter earnings outlook

By
Reuters
Published
Oct 8, 2009

Oct 8 (Reuters) - Children's clothing retailer Gymboree Corp (GYMB.O) raised its third-quarter earnings outlook, citing better-than-expected gross margin rates from effective inventory and markdown management.



Gymboree forecast third-quarter earnings per share in the range of $1.05 to $1.10, up from its prior outlook of 95 cents to $1.03 a share.

Analysts on average were expecting earnings of $1.08 per share, before items, according to Thomson Reuters I/B/E/S.

Sales at stores open at least a year and per store inventory levels are now expected to be down in the low to mid single-digits at the end of the quarter, the company said.

Shares of the San Francisco-based company were down 5 percent at $47.00 in low volume pre-market trade Thursday 8 October. They closed at $49.42 Wednesday 7 October on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Anne Pallivathuckal)

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