Gymboree nosedives after numbers; RadioShack awaits results; Momentive busy but steady

By Paul Deckelman

New York, Sept 10 – Gymboree Corp.’s bonds were heard by traders to have plunged in heavy trading on Wednesday after the children’s apparel retailer reported poor fiscal second-quarter numbers.

For the period ended Aug. 2, sales slid to $264.3 million from $290.9 a year earlier, while comparable-store sales at outlets open at least one year – considered a key retailing industry performance metric – swooned by 10%.

The company’s net loss more than tripled to $31.2 million compared to $9.4 million for the second quarter of fiscal 2013.

Also on the earnings front, traders saw RadioShack Corp.’s bonds under pressure, ahead of the scheduled Thursday morning release of its second-quarter earnings.

Retailer J.C. Penney Co. Inc. meanwhile came to market with an upsized $400 million issue of five-year notes.

While the new paper initially firmed, it quickly lost momentum and headed back down to around its issue price.

Away from the retailing sector, traders saw fairly active dealings in Momentive Performance Materials Inc.’s bonds, which had eased on Tuesday after the judge overseeing the specialty performance materials maker’s bankruptcy proceedings refused to let some bondholders change their initial votes on its reorganization plan. But the paper was seen fairly steady on Wednesday.

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