Gymboree rises on strong 1st-quarter sales, outlook

On Thursday, Gymboree Corp. said same-store sales, or sales in stores open at least one year, rose 4 percent in the first quarter.

The company also raised first-quarter and fiscal-year guidance ahead of analyst expectations.

The results were striking as many retailers are suffering as consumers cut back amid a rising cost of living and tightening credit.

Friedman, Billings, Ramsey analyst Adrienne Tennant called San Francisco-based Gymboree one of the winners in the retail sector, along with Abercrombie & Fitch Co., Gap Inc. and Urban Outfitters Inc.

"We think that the 'winners' have built positive business momentum that they should be able to carry into the summer season," she wrote.

Shares rose 93 cents, or 2.1 percent, to $45.90, after earlier trading to a 52-week high of $46.52. The stock had traded between $25.99 and $47.75 during the past year.