TRU QI Loss Widens
Toys R Us’ net loss for Q1 ended April 29 grew to $163 million from $125 million a year earlier as the toy retailer continued to be battered by “slower growth” in toys and “aggressive price discounting” by its competitors, CEO David Brandon said.
The chain’s Q1 net sales fell 4% to $2.2 billion amid a decline in sales of baby products and outdoor seasonal items. The baby products category accounted for 46.7% of Q1 revenue, down from 48.4% a year ago. Same-store sales dropped 4.1%, including a 6.2% decline in the U.S.
Toys R Us ended the quarter with $2.42 billion in inventory, down from $2.47 billion in the previous quarter. Its U.S. stores posted a decline in Q1 operating profit to $29 million from $67 million a year ago as revenue dropped 5% to $1.3 billion. The company’s international Q1 operating profit tumbled to less than $1 million from $10 million a year ago as sales declined 2% to $840 million.
Toys R Us, Richard Barry, Chief Merchandising Officer, 973-617-5888, Richard.email@example.com