Sales at existing Toys "R" Us Inc. (TOY.XX) stores fell 2.7% for
the holiday period and are down slightly for the year while gross
margin improved, led by better results in the U.S., the toy store
chain said Friday.
The privately held retailer has struggled to hold its position
amid stiffer competition from the likes of Wal-Mart Stores Inc.
(WMT) and Amazon.com Inc. (AMZN). Last year, it swung to a loss on
write-downs and falling sales in the U.S. and abroad.
In response, Toys "R" Us launched a series of changes, including
cutting the number of promotions and remodelling stores. For
example, stores added prominent displays featuring featured popular
toys and gifts under $30 to help drive sales. In September, the
company touted the changes saying it had recorded sales growth in
the U.S. for the first half of the year on a same-store basis.
Through Jan. 3, however, same-store sales are down 5% while net
sales are down 1.3% form the year-ago period, though gross margin
improved more than 200 basis points for the holiday season and
about 100 basis points for the year, the retailer said.
Internationally, sales rose 1.2% and 1.3% on a same-store
basis.
Based in Wayne, N.J., Toys "R" Us was bought in 2005 by Vornado
Realty Trust (VNO) and private-equity firms Bain Capital and
Kohlberg Kravis Roberts & Co. for $6.6 billion.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires