UPDATE 2-Gymboree Q2 profit beats analysts' estimates
(Adds analyst's comment, conference call details)
BANGALORE Aug 20 (Reuters) - Children's clothing retailer Gymboree Corp GYMB.O posted a better-than-expected quarterly profit on improved gross margin and backed its fiscal 2008 earnings outlook.
In a conference call with analysts, Gymboree said it expects fourth-quarter profit to be hit by 2 cents to 4 cents a share due to a fire at a contractor factory in Indonesia that led to higher freight costs arising from air shipments of the goods.
The company said it does not expect third-quarter earnings to be hurt by costs related to the fire.
"I think the sourcing strategy (for merchandise) that the company has should enable them to surpass the third-quarter and full-year guidance that they provided today," Wedbush Morgan Securities analyst Betty Chen said by phone.
For the third quarter the company, which operates Janie and Jack stores as well as its namesake Gymboree chain, expects a profit of $1.02 to $1.04 a share. Analysts were expecting earnings of $1.04 a share, before items.
The San Francisco-based company earned $8.0 million, or 27 cents a share, for the second quarter, compared with $5.8 million, or 19 cents a share, a year earlier.
Total net sales rose 13 percent to $205.7 million.
Analysts on average expected a profit of 25 cents a share, before exceptional items, on revenue of $206.1 million, according to Reuters Estimates. Continuación...