Toys ‘R’ Us Sales Take Off as Video Games, Ninja Soar

Toys ‘R’ Us Inc. said today its sales jumped 22.7% to $2.02 billion during the eight-week Christmas season, as would-be Santas snapped up Nintendo video games and Teen-Age Mutant Ninja Turtles action figures.

The world’s largest toy specialty retailing chain, which makes about half its sales in the eight weeks leading up to Dec. 24, said revenues were up 10% on a same-store basis. In the year-ago period, Paramus, N.J.-based Toys ‘R’ Us posted sales of $1.65 billion.

“During a year of retailing uncertainty filled with promotional gimmickry, our stores throughout the United States experienced outstanding Christmas business,” Toys ‘R’ Us Chairman Charles Lazarus wrote in a traditional year-end letter to shareholders. He cited the company’s usual strategy of “everyday low pricing” and a broad selection of goods.

Lazarus added the company also posted strong sales in its overseas toy stores and Kids R Us children’s clothing stores during the Christmas season.

In midday trading, Toys ‘R’ Us shares leaped $2.125 to $38 on the New York Stock Exchange.

During the season, Toys ‘R’ Us sales were boosted by products such as the new Nintendo Gameboy video-game software, Teen-Age Mutant Ninja Turtle action figures that are based on a television cartoon show and Batman items, a spokeswoman said. She said sales were also augmented by the more traditional Barbie doll.

The company also reported that sales for the first 11 months of its fiscal year ended Dec. 31 were up 19.2% to $4.48 billion from $3.76 billion a year earlier, with same-store sales up 6.2%.

“The sales were very good,” said one trader. Traders said Shearson Lehman Hutton Inc., Kidder, Peabody & Co. and Oppenheimer Inc. are recommending the stock.

Toys ‘R’ Us said it will release its 1989 earnings figures in March and declined to make a forecast.

Major retailers will report their results for December on Thursday.