Toys “R“ Us narrows Q1 loss but revenue, same-store sales slip

Wayne, New Jersey — Toys "R" Us Inc. narrowed its losses in the fiscal first quarter. But the chain’s revenue and same-store sales both fell amid a decrease in promotional activities and weakness in the baby and entertainment segments.

Toys “R” Us recently appointed former Domino’s Pizza chief executive David Brandon as its next CEO, effective July 1. He will take the reins from current CEO Antonio Urcelay.

Net losses for the quarter ended May 2 were $140 million, down from $196 million in the prior-year period.

Sales declined by $154 million to $2.32 billion.. The company said excluding the $131 million negative impact of foreign currency translation, net sales fell $23 million.

Domestic same-store net sales fell 2.3% International same-store net sales rose 1.2%.

“The results for the first quarter of fiscal 2015 demonstrate the steady progress we are making in executing our “TRU Transformation” strategy,” said Urcelay. “ During the quarter, we delivered a strong increase in Adjusted EBITDA, which benefited from significant SG&A savings. While the U.S. experienced softness in comparable store net sales, our U.S. operating performance improved significantly, almost tripling the prior year’s operating earnings. Internationally we continued our positive comparable store net sales trend, where we experienced particular strength in China and Southeast Asia.”