The poor child keeps coming in bruised and battered, bones broken, dreams shattered. But the overall trend remains ugly. In retrospect, it's simply astonishing that Gymboree's management persisted in a rapid new store rollout when it should have been obvious 18 months ago, when inventories began to bulge, that they had a serious merchandising problem.
Some critics consider the older boys line too clownish to appeal to increasingly sophisticated kids.
That shortcoming is particularly problematic given that Gymboree wants to expand into the pre-teen market through its Zutopia concept. So the company may still manage a comeback. However, investors hoping for a turnaround this year must now face the fact that the company has to reposition its brand first. That will take time, and perhaps better sense than Gymboree's management team has shown of late. My own view is that cosmetic changes like new store signs won't have much impact.