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Exhibit 99.3
Analyst Contact:
Jordan Goldstein
(650) 696-2933
8:00 am Eastern
Gymboree Reports May Sales
Burlingame, CA, June 1, 2000. The Gymboree Corporation (Nasdaq: GYMB) reported
sales for the four-week period ended May 27, 2000, of $22.5 million, a decrease
of 31% from sales of $32.7 million for the same period last year. Comparable
store sales for the four-week period decreased 33% compared to the same period
last year.
Net sales for the 17 weeks ended May 27, 2000, were $123.1 million, a decrease
of 22% from sales of $158.5 million for the same period last year. Comparable
store sales for the period decreased 26% compared to last year.
Gymboree has completed a private placement of common stock, having raised $9.5
million in exchange for approximately 3.2 million shares. As part of this
transaction, the company intends to issue warrants for an additional 480,000
shares. Gymboree also announced that its current bank has informed the company
that a $60-million, three-year secured credit facility has been approved by the
bank, subject to the execution of a loan agreement and related documents. The
bank had previously extended the current line of credit until July 31, 2000 in
order to provide adequate time to complete this process.
"While sales continue on the trend we anticipated based on limited inventory, we
believe we have put the financing in place that we will need to sustain a
healthy balance sheet," said Stuart Moldaw, Gymboree's Chairman and Chief
Executive Officer. "We continue to expect that beginning in the third quarter,
our inventories will support positive comparable store sales, and we believe
that we will see a return to profitability."
The Gymboree Corporation designs, manufactures and retails unique, high-quality
apparel and accessories for children. As of May 27, 2000, Gymboree operated 603
stores, including 552 stores in the United States, 20 stores in Canada and 31 in
Europe, as well as an online store at www.gymboree.com. The company also offers
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directed parent-child developmental play programs at more than 420 franchised
and company-operated centers in the United States and 14 other countries.
The foregoing sales figures for May are unaudited and subject to quarter-end
adjustment and could differ materially from those indicated. The foregoing
paragraphs contain forward-looking statements within the meaning of the Federal
Securities laws which reflect our current view of future events and financial
performance, including statements about executing a credit
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agreement, inventory levels, future comparable store sales performance and
anticipated quarterly earnings. Actual results could differ materially as a
result of a number of factors, including execution of the final credit facility,
our success in issuing warrants, our success in returning our business to
profitability in the third quarter, our success in delivering appropriate
merchandise inventory levels, our ability to achieve positive comparable store
sales, general economic conditions, competitive market conditions, and consumer
acceptance of our products. 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.
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