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