... (Gymboree) comparable store sales (comps) trends have been negative for the last few years, with the exception of 2010, with particular weakness at its core Gymboree brand, which Fitch Ratings estimates accounts for 60% of domestic retail sales. Fitch attributes the decline to weak merchandising execution and what are likely perceived as high price points in an increasingly competitive and overcrowded mid-tier space. Crazy 8, the company's value concept, has also seen erratic comps performance. Negative Comps to Persist: Fitch expects 2014 comps to be negative 3% and to be flat to modestly negative in 2015 and 2016. Top-line growth has mainly come from new store openings, which added 5%¡7% annually to revenue between 2009 and 2013. However, the net additions have moderated significantly to preserve liquidity and Fitch expects minimal contribution from store openings. Crazy 8, which Fitch estimates accounts for 25% of total sales and has...
