Gymboree Reports Q2 Above Guidance, Sterne Agee Reiterates Buy (GYMB)

Sterne Agee reiterated its Buy rating on shares of Gymboree Corp. GYMB this morning, after the company reported second quarter earnings above guidance. Sterne Agee maintains a $62 price target on the stock. The Gymboree Corporation is a specialty retailer operating stores selling apparel and accessories for children. Gymboree reported EPS of $0.44, above the previous guidance range of $0.40-$0.42. Margins were in line with our estimates. Sterne Agee warns, however, of a "Sluggish start to back to school and Q3 guidance likely includes lower merchandise margins." Sterne Agee maintains that Gymboree is a "well-managed retailer." Shares are lower by 1.6% this morning, to $40.47. Strong Buy Stocks That Have Tripled the Market. See them for free.