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Toys ‘R’ Us posts second-quarter losses

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.
September 13, 2010

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.

About The Author
Wendy is Kidscreen’s Associate Editor. When she’s not sourcing material for the brand's daily email newsletter, she’s researching, writing and connecting with others about the newest trends in digital media. Contact Wendy at wgoldman@brunico.com.

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