SAN FRANCISCO (

TheStreet

) -- Adult shoppers may be cutting back on their own spending, but not evidently when it comes to their kids.

Gymboree

TST Recommends

Inside Eli Lilly's Surging Stock Price
Play

Lilly Gets FDA Breakthrough Status for Alzheimer's Drug

Eli Lilly received FDA breakthrough status for its donanemab Alzheimer's drug, speeding the agency's review of the product. The shares are higher.

Bed Bath & Beyond is putting some stores to sleep.
Play

Bed Bath & Beyond Leaps on Bank of America Upgrade, Fading 'Meme' Interest

BofA analyst Curtis Nagle says Bed Bath & Beyond shares are trading closer to their pre 'meme mania' levels, and represent good retail sector value.

(GYMB)

, the children's apparel retailer, saw profit more than double in the second quarter as its

promotional marketing

drew customers to its stores and its outlet business and loyalty program boomed.

During the quarter the company earned $12.2 million, or 41 cents a share, compared with $8 million, or 27 cents, in the year-ago period. Results include a tax benefit of 5 cents a share.

Sales jumped 5% to $212.3 million from $202.8 million, while total same-store sales slipped 1%.

The company is also poised for growth with its Crazy 8 concept, which is targeted to the more price-sensitive consumer.

Still, Gymboree provided some cautious guidance for the third quarter, saying it now expects to post earnings of 95 cents to $1.03 a share. That's below anaylsts current expectations of $1.05 a share for the third quarter.

Shares of the company ended the day up 1% to $40.10, but surrendered those gains in after-market trading, changing hands at $39.50.

Rival

Children's Place

(PLCE) - Get Report

is set to report its second-quarter earnings on Thursday.

--Reported by Jeanine Poggi in New York.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.