UPDATE 1-Gymboree Q3 same-store sales disappoints Wall Street

* Sees Q3 EPS $1.10 to $1.13

* Q3 comp sales down 4 pct vs est fall of 2.9 pct

Nov 5 (Reuters) - Gymboree Corp (GYMB.O) posted a bigger decline in third-quarter same-store sales than what the market expected, but the children's clothing retailer raised its third-quarter profit view for the second time in two months.

Gymboree posted a same store sales decline of 4 percent, while Wall Street analysts were expecting a 2.9 percent fall, according to Thomson Reuters data.

The company said third-quarter profit was boosted by better expense control and improvement in gross margins.

The retailer, which caters to newborns to 12-year-olds, now expects to earn between $1.10 and $1.13 a share for the third quarter.

Analysts on average were looking for a profit of $1.10 a share, before items, according to Thomson Reuters I/B/E/S.

In October, the company had raised its third-quarter forecast to a profit of between 1.05 and $1.10 a share, from its previous outlook for the period.

Rival Children's Place Retail Stores Inc (PLCE.O) posted a smaller-than-expected dip in October same store sales. [ID:nBNG353452]

Shares of the San Francisco-based retailer were down 9 percent at $38.58 Thursday morning on the New York Stock Exchange. (Reporting by Vidya Lakshmi and Abhishek Takle in Bangalore; Editing by Jarshad Kakkrakandy)