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Toys R Us posts wider loss in quarter

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Bloomberg News

Toys R Us Inc., the largest U.S. toy-store chain, said Friday that its fiscal third-quarter loss widened as the global economic slowdown curbed sales and crimped gross margins.

The loss was $104 million, compared with $76 million a year earlier, the Wayne, N.J.-based company said in a regulatory filing. Revenue for the period ended Nov. 1 fell less than 1% to $2.77 billion.

Sales at stores open at least a year, a key measure of retail health, dropped 0.3% as consumers reined in purchases amid the worst financial crisis since the Great Depression.

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Toys R Us said last month that it had planned aggressive promotions for the holidays. Last year’s fourth quarter generated about 42% of full-year sales and all of its profit.

The retailer was purchased in July 2005 by Bain Capital, Kohlberg Kravis Roberts & Co. and Vornado Realty Trust for $6.6 billion after it lost U.S. market share to Wal-Mart Stores Inc. and Target Corp.

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