... (Gymboree) comparable store sales (comps) trends have been negative for the last few years, with particular weakness at its core Gymboree brand, which accounts for approximately 64% of domestic retail sales. Fitch Ratings attributes the decline to weak merchandising execution, what are likely perceived as high price points in an increasingly competitive and overcrowded mid-tier space, and cannibalization from Crazy 8, the company's own value concept. Modest Sales Expectations: Fitch expects 2015 comps to be flat and in the negative 1%¡ positive 1% range in 2016/2017. Given the significant decline in store-level sales productivity and the need to preserve liquidity, Fitch expects Gymboree may have to accelerate store closings from the net 20 store closings expected in 2015, limiting sales growth. Fitch consequently projects slightly negative sales growth over the next 24¡36 months. Stagnant EBITDA: Fitch expects 2015 EBITDA to be around...
