Toys 'R' Us posts 3Q loss

WAYNE, N.J. Toys “R” Us today reported in an SEC filing net sales of $2.8 billion for its 2007 third quarter, compared with net sales of $2.5 billion for the same period last year. The company reported a net loss of $76 million for the quarter, compared with net income of $41 million last year. Operating loss for the company was $26 million, compared to operating earnings of $7 million last year. According to the filing, the U.S. sector contributed greatly to the loss, with an operating loss of $95 million for the quarter.

The company reported that the net loss was mainly due to increases in SG&A of $122 million as a result of increases in corporate-related, store occupancy, payroll-related, and advertising expenses, a decrease in net gains on sales of properties of $91 million, and a decrease in income tax benefit of $13 million.

Toys “R” Us said that it could not quantify the impact the number of toy recalls had on its net sales.

The company reported a comparable-store sales decrease of 2.2% for its U.S. business and a comparable-store sales increase of 2% for its international segment. Comparable-store sales at Babies “R” Us increased 1.2%.