Quarterly Earnings Drop at Toys R Us

Toys R Us Inc. said fiscal fourth-quarter earnings fell 2.6% because the toy retailer was forced to mark down prices to compete with discount stores. Profit for the quarter ended Jan. 31 slipped to $378 million, or $1.32 a diluted share, from $383 million, or $1.37, a year ago. Sales rose 7%, to $4.98 billion from $4.67 billion. Per-share earnings beat by a penny the average estimate of analysts surveyed by IBES International Inc. The company said it plans to reduce promotional spending and distribution costs to improve results for fiscal 1998. For fiscal ‘97, the company’s net income rose to $490 million, or $1.70 a diluted share, from $427 million, or $1.54 a share. Shares of the Paramus, N.J.-based company rose 38 cents to close at $28.38 on the New York Stock Exchange.