Toys R Us Narrows Loss Amid Restructuring
{{#rendered}} {{/rendered}}Toys R Us Inc. (TOY), the No. 2 U.S. toy seller that is considering quitting the toy business, on Monday posted a narrower third-quarter loss as it works to restructure the company.
The retailer posted a loss of $25 million, or 12 cents per share, for the quarter ending Oct. 30, compared with a loss of $46 million, or 22 cents per share, a year earlier. Analysts, on average, had expected a loss of 15 cents per share, according to Reuters Estimates.
The company, hit hard by competition from discounters like No. 1 toy seller Wal-Mart Stores Inc. (WMT), said total sales fell 1.4 percent to $2.21 billion from $2.25 billion a year earlier.
{{#rendered}} {{/rendered}}Sales at U.S. toy stores open at least one year — a key retail gauge known as same-store sales — fell 1.7 percent.
Babies R Us same-store sales nudged up 0.5 percent. International same-store sales rose 4.3 percent in local currencies. Video game sales were up 2.4 percent. Sales at Toysrus.com rose to $67 million from $66 million a year earlier.
In August, Wayne, New Jersey-based Toys R Us said it was considering selling its toy business to focus on its faster-growing Babies R Us unit. It also plans to separate ownership of the businesses.
{{#rendered}} {{/rendered}}After being hit by intense price competition last holiday season, Toys R Us has been pricing many items this year close to, or cheaper than, rival Wal-Mart.