ToysRUs
Consumer Products

Soft gaming sector hindering Toys ‘R’ Us sales

As New Jersey-based mega retailer Toys 'R' Us continues to position itself for long-term growth with acquisitions in China and Southeast Asia, the company experienced losses during its fiscal third quarter.
December 12, 2011

As New Jersey-based mega retailer Toys ‘R’ Us continues to position itself for long-term growth with acquisitions in China and Southeast Asia, the company experienced losses during its fiscal third quarter.

The company, which is expected to go public in 2012, saw a net loss of US$93 million, a loss equal to the same period last year as interest expenses decreased.

As margins improved 0.2% versus a year ago, quarterly sales declined 0.7% to US$2.7 billion with same-store net sales down 2.2% in the domestic segment and 3.9% internationally.

The company’s core toy and learning toy categories continued to show strength, generating net sales growth of 3.8% and 2.7%, respectively. Meanwhile, the entertainment category (which includes video game software and hardware) continued to slide, down 14.5%, reflecting overall softness in the video game industry. Excluding the entertainment category, net sales increased by 0.9%.

As part of the company’s long-term strategy, it invested US$266 million through the end of the fiscal third quarter to expand and remodel existing stores, open new stores and improve itsĀ IT infrastructure.

Last month, TRU bought a 70% interest in its existing licensed operations throughout Asia.

About The Author
Jeremy is the Features Editor of Kidscreen specializing in the content production, broadcasting and distribution aspects of the global children's entertainment industry. Contact Jeremy at jdickson@brunico.com.

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