Gymboree To Debut in Dubai

Children’s clothing retailer Gymboree Corp. will take its first steps into the Middle East market with the opening of stores in Dubai during the third fiscal quarter of 2010. The move comes as part of the San Francisco-based chain’s first retail franchise relationship. Gymboree announced yesterday it had entered into a multi-year franchise agreement with Azadea G Group Limited, a wholly-owned subsidiary of Azadea Group Holding SAL, to launch the brand in the region.

Beirut-based Azadea already knows retail and the local market. A leading fashion and lifestyle company in the Middle East, North Africa and Europe, it operates more than 350 stores in 11 markets including the United Arab Emirates, Saudi Arabia, Egypt, Kuwait, Iraq, Qatar, Oman, Bahrain, Jordan, Lebanon and Romania. Its portfolio includes more than 30 international brands.

Gymboree had more good news yesterday. Its fourth fiscal quarter net sales jumped 4 percent versus the same period in 2008 to reach $299.6 million. Although comparable store sales decreased 2 percent year from 2008’s fourth fiscal quarter to 2009’s, gross profit reached 46.7 percent for fiscal 2009’s closing quarter versus 43 percent in 2008.