A dip in gross profits and an increase in pretax losses are not stopping The Gymboree Corp. from opening 50 new stores during the 2014 fiscal year.
The San Francisco-based Gymboree reported its consolidated first quarter results Friday, noting that net loss reached $13.4 million, up from $2.5 million one year earlier. Net sales toppled 7 percent to $272 million from $292.8 million, while same store sales fell 10 percent.
The children’s retailer confirmed it will open 50 new stores planned evenly across its brands Gymboree, Gymboree Outlet, Janie and Jack, and Crazy 8. However, the company expects to concurrently close 25 to 30 existing stores.
Gymboree anticipates spending $35 million to $40 million in capital expenditures and intends to use its asset-backed loan (ABL) facility throughout the course of the year to support seasonal working capital. It does expect to have any outstanding borrowings by the closure of fiscal year.