Wayne, N.J., Toys βRβ 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 yearβs loss includes a $12 million charge related to closing its underperforming Kids βRβ 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 βRβ 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 βRβ 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 βRβ Us division during the first half of 2005. This past August, Toys βRβ Us said it was considering selling its toy business to focus on its Babies βRβ Us unit.