Toys "R" Us Inc. reported on Friday that it narrowed its net
loss, although sales fell 6% in the May quarter, hurt by a decrease
in promotional activities and weakness in the baby and
entertainment segments.
The retailer reported a first-quarter loss of $140 million,
improved from the $196 million deficit a year earlier, as selling
and general expenses fell to $827 million from $917 million a year
earlier. Total sales fell to $2.33 billion from $2.48 billion.
Adjusted earnings before interest, taxes, depreciation and
amortization grew to $70 million from $27 million in the like
year-earlier period, however.
For the most recent reporting quarter, U.S. sales at comparable
stores fell 2.3%, with declines in the seasonal, entertainment and
baby categories. Internationally, sales at comparable stores were
up 1.2% despite similar decreases in the entertainment
category.
Last week, the company appointed David Brandon, former chief
executive of Domino's Pizza Inc. and Valassis Communications Inc.,
to be its new CEO, effective July 1.
The appointment of Mr. Brandon, a veteran of initial public
offerings, could point the way to an eventual exit for the three
private-equity firms that bought Toys "R" Us for $6.6 billion
before the financial crisis, but have been stuck there as the
company's weak financial performance has made a public offering
unlikely.
Write to Angela Chen at angela.chen@dowjones.com
Access Investor Kit for Domino's Pizza, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25754A2015
Subscribe to WSJ: http://online.wsj.com?mod=djnwires