ToysRUs
Consumer Products

Toys ‘R’ Us reports wider third-quarter loss

Wayne, New Jersey-based retail giant Toys 'R' Us is feeling the sting of heightened competition from online rivals like Amazon as the toyco posted a third-quarter loss of US$605 million, compared to a loss of US$105 million a year ago.
December 18, 2013

Wayne, New Jersey-based retail giant Toys ‘R’ Us is feeling the sting of heightened competition from online rivals like Amazon as the toyco posted a third-quarter loss of US$605 million, compared to a loss of US$105 million a year ago.

The company attributed the loss primarily to an increased income tax expense of US$379 million and reported a net sales decline of 5.2% in the US and a drop of 3% internationally.

Soft sales of educational, juvenile, baby, and core toy categories, combined with an earlier release of the company’s Big Book promotional catalogue, contributed to the US sales decline while revenue abroad was hurt mostly by weaker sales of electronics, video game software and hardware, juvenile toys and outdoor products.

Overall Q3 sales were US$2.5 billion, representing a slide of US$118 million or 4.5% versus a year ago.

In a statement from new CEO Antonio Urcelay, who joined the company in October, the company is zeroing in on its current holiday strategy to help turn around sales.

“Now, in the heart of the Christmas selling season, the team is fully focused on executing our holiday strategy and leveraging our strong in-stock position on the season’s hottest toys,” Urcelay stated.

In a separate announcement, the toyco has stated it will remain open for 87 hours, from 6 a.m. December 21 through 9 p.m. December 24 to cater to consumers’ last-minute shopping needs.

And in an effort to boost its online content experience, the Toys ‘R’ Us Toy Channel recently launched on YouTube.

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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