Toys R Us Profit Rises 6.8% Despite Industry Sluggishness
Toys R Us Inc. said fiscal fourth-quarter profit rose 6.8% as it cut costs, kept top-selling holiday items in stock and lured customers with revamped stores and one-of-a-kind toys.
Toys R Us said earnings rose to $251 million, or $1.23 a share, in the period ended Feb. 3, from $235 million, or 98 cents, a year ago. The results beat the consensus estimate of analysts by 1 cent, according to First Call/Thomson Financial. Sales fell 4.5% to $4.8 billion.
The company also said it named Chief Executive John Eyler to the additional post of chairman, replacing Michael Goldstein. Goldstein will remain on the board.
Although the toy industry had a sluggish year without a blockbuster hit to drive sales, U.S. holiday same-store sales at Toys R Us rose 3.5% as the company kept 90% of the 1,500 best-selling items in stock. That compares with a 2% drop the previous year, when the retailer ran out of many popular toys.
Profit also was helped by sales of higher-margin exclusive products, such as Toys R Us’ Animal Alley plush toys. Toysrus.com, the Web site run jointly with Amazon.com Inc., saw holiday sales triple to $180 million, and its losses narrowed.
Shares of Paramus, N.J.-based Toys R Us rose $1.40 to close at $25.55 on the New York Stock Exchange.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
* Lands’ End Inc. reported a 12% rise in fiscal fourth-quarter earnings to $31.8 million, or $1.07 a share, on an 11% increase in sales to $538.6 million. The catalog retailer had warned twice during the quarter that it would miss estimates because of price cutting and rising costs. That prompted analysts to cut their forecasts in November to $1.06 from $1.28 a share.
* Venator Group Inc. said its fiscal fourth-quarter profit jumped to $37 million, or 26 cents a share, excluding the Northern Group casual apparel business that it plans to sell. The results beat forecasts by 2 cents. The operator of athletic apparel chains Foot Locker and Champs, had earned $3 million, or 2 cents a share, in the year-ago period. Sales rose 6.5% to $1.26 billion.
* Zale Corp.’s profit edged up 3.7% in its fiscal second quarter to $87 million, or $2.52 a share, on a 16% rise in sales to $855.3 million. Analysts had lowered forecasts to $2.46 from $2.77 in December on the company’s guidance.
