For the period ended November 1, Wayne, New Jersey-based retail giant Toys ‘R’ Us posted a third-quarter net loss of US$213 million, compared to a loss of US$605 million a year ago.
The company attributed the smaller loss primarily to a US$287-million decrease in income taxes and reported overall sales of US$2.5 billion, a 1.3% drop from the year prior.
For its US stores, Toys ‘R’ Us posted a net sales decrease of 1%, driven by declines in the entertainment, learning and baby product categories, which were partially offset by improvement in its core toy category.
International store sales, meanwhile, were up 1.1%, thanks to increases in the core toy and seasonal categories, which were offset by a decrease in the entertainment category (electronics, video game hardware, software).
Notably, for the third-consecutive quarter, the company has reported positive comparable store sales for its international stores, showing particular strength in the Asia-Pacific region.
According to Toys ‘R’ Us chairman and CEO Antonio Urcelay, a more disciplined approach to promotional offerings contributed to its US margin improvement.
Additionally, the company recently completed refinancing US$1.4 billion of the company’s near-term debt maturities, including US$1 billion of debt maturing in 2016. As a result, it has no significant debt coming due until 2017.
TRU’s attention is currently focused on the holiday season and critical fourth-quarter selling period. And with improvements made throughout the first three quarters of the year, the retailer is positioned to deliver an improved shopping experience for customers, both in store and online.