Gymboree’s CEO is stepping down
January 27, 2017 11:53 AM
Struggling children’s apparel retailer Gymboree Corp. is looking for a new CEO.
CEO Mark Breitbard will transition out of his current role and become chairman of the retailer’s board on Wednesday, the retail chain says
Breitbard took over as CEO of Gymboree, No. 365 in the Internet Retailer 2016 Top 500 Guide, in January 2013 after spending the previous four years at apparel retailer Gap Inc. (No. 20). Since then, Gymboree has grown its online sales to an Internet Retailer-estimated $55.6 million in 2015, up 22.7% from $45.3 million in 2013. That also represents a compound annual growth rate of 10.72% during that span.
But while online sales have been growing according to Internet Retailer estimates, overall sales have not. The retail chain does not break out online sales in its quarterly earnings reports. However, in December, Gymboree reported a 5% year-over-year comparable sales decline including online sales for the first quarter of fiscal 2017 ended October 29. Revenue from the company’s retail stores, which includes online, declined 4.6% to $276.3 million, down from $289.7 million during the same period the previous year. Meanwhile, the company also posted a $10.9 million net loss during the quarter, compared to a $9.7 million loss during the same time the previous year.
“I have given serious thought to the evolving needs of The Gymboree Corporation as an organization, and I believe this is the right time for the Board of Directors to identify a new CEO to lead the company forward as we continue to focus on the strategic plans for our brands,” Breitbard said.