Earnings Vault at Gymboree

Gymboree(GYMB Quote) posted a bigger-than-expected jump in second-quarter earnings and lifted its forecast for the year, helped by improved sales and margins.

The children's goods retailer said Wednesday that its second-quarter earnings soared to $5.8 million, or 19 cents a share, from $544,000, or 2 cents a share, a year earlier.

The results were stronger than Gymboree's guidance for earnings of 13 cents to 15 cents a share, and beat Thomson Financial's average analyst estimate of 15 cents.

Sales rose to $179.9 million from $149.6 million. Same-store sales -- representing sales at stores open at least a year -- climbed 5%.

"During the second quarter, we increased gross profit percentages, leveraged operating expenses and significantly improved our profitability," said Matthew McCauley, chairman and CEO. "Our ongoing merchandising, customer acquisition, store base expansion and expense management strategies are proving successful."

For the full year, Gymboree now sees earnings of $2.50 to $2.53 a share, above its May projection of $2.42 to $2.46. Analysts, on average, predict earnings of $2.55 a share.

The company projected earnings of 84 cents to 87 cents a share for the current quarter, slightly below Wall Street's 88-cent target.

Shares were down 70 cents, or 1.7%, to $40.80 in after-hours trading. The stock had jumped $1.89, or 4.8%, to $41.50 in the regular session.