Gymboree OKs $30-Million Stock Buyback

Gymboree Corp. said its board approved another $30-million stock buyback program, because the shares are undervalued in the market. At Wednesday’s closing price of $25.38, the Burlingame-based retailer of children’s clothing could buy about 1.18 million shares. It had about 24.9 million shares outstanding at Nov. 1. Gymboree shares have fallen nearly 12% in the last year. Gymboree in May completed the buyback of about $30 million in stock, or 1.22 million shares. The company said the decision reflects the board’s confidence that the current market price does not reflect the stock’s potential. The shares will be bought in the open market. Gymboree operates 434 stores and owns and franchises more than 390 children’s play centers in the United States and nine other countries. Its shares rose $1.06 to close at $26.44 on Nasdaq.