Gymboree (GYMB) Cuts Senior Management Salaries; Believes 2009 Earnings Will Be Lower Than 2008
The Gymboree Corporation (Nasdaq: GYMB) has approved immediate salary reductions for senior management of 10-15%. In addition, effective January 4, 2009, the Company will implement broad-based salary reductions of up to 10% for the senior field management and corporate staff.
"Our management group prides itself on being aggressive, being prepared and holding ourselves accountable," said Matthew McCauley, Chairman and Chief Executive Officer. "While the financial position of the Company remains strong with over $100 million in cash and no debt, the salary reductions we are implementing are just a piece of a broader strategy to be prepared for next year and position ourselves to come out of the current downturn an even stronger Company than we are today. Our current sales trends are in the range of our previous guidance, but there is clearly weakness in the consumer sector and we expect further deterioration in the consumer markets. While it is too early to provide formal guidance for fiscal 2009, based on our expectation of continued weakness in consumer spending, we believe that our 2009 earnings will be below 2008 levels even after implementing our expense reduction strategies."
The Gymboree Corporation is a specialty retailer operating stores selling apparel and accessories for children under the GYMBOREE, GYMBOREE OUTLET, JANIE AND JACK and Crazy 8 brands, as well as play programs for children under the GYMBOREE PLAY & MUSIC brand. [SM]
"Our management group prides itself on being aggressive, being prepared and holding ourselves accountable," said Matthew McCauley, Chairman and Chief Executive Officer. "While the financial position of the Company remains strong with over $100 million in cash and no debt, the salary reductions we are implementing are just a piece of a broader strategy to be prepared for next year and position ourselves to come out of the current downturn an even stronger Company than we are today. Our current sales trends are in the range of our previous guidance, but there is clearly weakness in the consumer sector and we expect further deterioration in the consumer markets. While it is too early to provide formal guidance for fiscal 2009, based on our expectation of continued weakness in consumer spending, we believe that our 2009 earnings will be below 2008 levels even after implementing our expense reduction strategies."
The Gymboree Corporation is a specialty retailer operating stores selling apparel and accessories for children under the GYMBOREE, GYMBOREE OUTLET, JANIE AND JACK and Crazy 8 brands, as well as play programs for children under the GYMBOREE PLAY & MUSIC brand. [SM]
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