Old Man Winter chills Toys’R’Us Q1 sales
WAYNE, N.J. — Lingering cold weather and soft sales in its electronics and entertainment categories caused Toys”R”Us’ net and comparable store sales for first quarter ended May 4 to dip.
The company reported net sales of $2.4 billion, a decrease of nearly 8% from $2.6 billion for the quarter a year ago. The decline in net sales for the quarter was primarily attributable to a decrease in comparable store net sales, as well as a foreign currency translation impact of $67 million.
Comparable store net sales were down 8.4% in the domestic segment and 6% in the international segment. The overall decrease in comparable store net sales resulted primarily from decreases in the company’s juvenile, seasonal and entertainment (which includes electronics, video game hardware and software) categories.
“Similar to other retailers, our soft sales in the first quarter were partially impacted by the ongoing challenges of the global economic environment and the prolonged cool weather conditions around the world,” said interim CEO Antonio Urcelay. “Additionally, the continued weakness in the electronics and entertainment category negatively affected revenues.”
The company plans enhance its omnichannel capabilities to maximize sales through all channels, and expand its global reach, including throughout China and Southeast Asia, to deepen its assortment of differentiated products.