TRU loss widens in Q3
WAYNE, N.J. - Toys“R”Us reported that net sales for the third quarter were $2.7 billion, an increase of 1.9% compared with prior year, due to new locations including Toys“R”Us Express stores as well as comparable-store net sales growth of 2.3% in the domestic segment and a foreign currency translation benefit of $17 million. These increases were partially offset by a decline of 2.9% in comparable-store net sales in the international segment.
Net loss for the quarter was $93 million compared to $67 million in the prior year. The increase in net loss reflects both the decline in Adjusted EBITDA and an increase in interest expense primarily due to write-offs of deferred financing fees related to debt refinancings completed in August and higher effective interest rates. These were partially offset by an increase in income tax benefit.
Jerry Storch, chairman and CEO of Toys“R”Us, stated, “We are pleased with the progress we made during the third quarter in positioning the company for the holiday season and for the long term. We made important investments for our future during this quarter, including the opening of new stores and furthering the integration of existing stores around the world to include both toy and juvenile products. At the same time, we intensely focused on the implementation of our aggressive holiday strategy. This included the addition of approximately 45,000 seasonal employees to ensure service excellence, the doubling of our U.S. toy store base with more than 600 Toys“R”Us Express locations, and the ramping up of our inventory of hot and exclusive products.” Storch added, “Now, as we enter the heart of the holiday shopping season, we remain committed to delivering great value to our customers, providing a differentiated shopping environment with unique merchandise offerings and ensuring we have the hot toys in stock when shoppers want them.”