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Toys 'R' Us Records an Increase in Sales

Loss grows due to taxes and expenses

  • Key4Communications

Toys 'R' Us posted an increase of 2.9% in the consolidated net sales for the first quarter of 2014, reaching $2.5 billion, thanks mostly to the increase in comparable net stores, that was of 4% in the North American market and of 1% in international markets.

The company recorded a net loss of  $196 million, compared to a net loss of $111 million in the prior year, primarily due to a decrease in income tax benefit of $71 million and the increase in expenses of $31 million, partially offset by an increase in gross margin dollars of $18 million. The retailer reached an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $33 million, compared to $39 million a year ago.

Antonio Urcelay, CEO, expressed its satisfaction with the “positive comparable store net sales results in both our U.S. and international segments during the first quarter of the year. As we continue to work to improve operating margins, we have begun the process of developing a clearer pricing strategy, while simplifying and optimizing our promotional offerings. Additionally, during the first quarter, we began an aggressive inventory clearance effort in our U.S. stores, which we view as a necessary step to make way for new products for the critical holiday selling season ahead and to improve our inventory turns in future periods."

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