Toys β€œR” Us Narrows 3Q Loss

Wayne, N.J., Toys β€œR” Us, Inc. narrowed its third-quarter loss to $25 million in the period ended Oct. 30. That compares with a loss of $46 million in the prior-year period. This year’s loss includes a $12 million charge related to closing its underperforming Kids β€œR” Us division, and a gain of $23 million from real estate sales.

Same-store sales at U.S. toy stores declined 1.7% during the 13-week period. However, international same-store sales increased 4.3% and Babies β€œR” Us reported a 0.5% up-tick in same-store sales. Total revenues were down 1.8% to $2.21 billion from $2.25 billion a year earlier.

Toys β€œR” Us also noted that it would not engage in a price war with Wal-Mart and other retailers that sell toys this holiday season. It also is expected to make a final decision regarding its fast-growing Babies β€œR” Us division during the first half of 2005. This past August, Toys β€œR” Us said it was considering selling its toy business to focus on its Babies β€œR” Us unit.

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