Toys ‘R’ Us Posts Q1 Operating Earnings Increase

Toys “R” Us recently reported a first-quarter operating earnings increase of $21 million for the quarter ending May 2. In Q1 of fiscal 2008, the toy and baby retailer posted operating earnings of $2 million.
Toys “R” Us ended the quarter with $470 million in cash, up from $408 million at the end of 2008’s Q1.
“Our first-quarter results speak to the strengths of our business strategy and reflect our discipline as an organization in delivering results, protecting margins and rigorously controlling expenses,” says Jerry Storch, chairman and chief executive officer of Toys “R” Us.

The company also reported Q1 net losses of $35 million, compared to $36 million for first quarter of fiscal 2008. Comparable-store net sales for both the retailer’s domestic and international markets decreased by 5.4 percent. Nearly half of that drop was seen in the entertainment products category.
“We remain mindful of the uncertain economic environment and continue to be prudent in managing every aspect of our business,” says Storch.

“At the same time, we have aggressively pursued opportunities to grow market share and advance our specialist position in the toy and baby products categories. Our recent acquisitions of FAO Schwarz, along with eToys.com, babyuniverse.com, Toys.com and ePregnancy.com, add to our portfolio of family-friendly brands and differentiated product offerings.”

Brought to you by