Global toy retailer Toys ‘R’ Us has posted its financial results for the second quarter ending July 31, revealing a 3.2% decline in global net sales (attributable to the decline in video game hardware and software sales), while total net sales remained relatively unchanged at US$2.6 billion.
Adjusted EBITDA for the period was US$138 million compared to US$145 million a year ago. And during its second quarter the company continued the integration of its toy and juvenile businesses, completing a total of 19 side-by-side store conversions, with 12 in the US and seven internationally.
In preparing for the holiday shopping season, Toy ‘R’ Us has started rolling out its new 600 pop-up Express stores across the US. The presence of existing pop-up locations helped contribute to the US$1.6 billion earned in domestic net sales for the quarter, up from $1.576 billion in last year’s second quarter.
Subsequent to quarter’s end, the company completed three significant rounds of re-financing, consisting of a six-year, US$700 million secured term loan and a US$350 million offering of six-year, senior secured notes.