Ahead of the Bell: FBR downgrades Gymboree

The weak consumer environment may soon wear on Gymboree Corp., a Friedman, Billings, Ramsey analyst said Tuesday, downgrading the children's clothing retailer to "Market Perform" from "Outperform."

Analyst Adrienne Tennant said although Gymboree's recent performance "has been nothing short of outstanding," consumer spending is likely to slow even further with higher gas prices, rising unemployment and inflation.

"As a result, we believe that even the best-of-breed retailers may be impacted by overall consumer spending trends," Tennant wrote in a note to investors. "As such, we are choosing to lock in profits on recent outperformers such as Gymboree."

Tennant said investor expectations remain high for the San Francisco-based company. She maintained her earnings estimates, but cut her price target to $43 from $49.

A representative from Gymboree could not immediately be reached for comment early Tuesday.

On Monday, shares of Gymboree lost 9 cents to close at $39.43. The stock has gained 29 percent year-to-date.