Toys “R” Us loss triples in Q2
Wayne, N.J. — Toys "R" U widened its loss in the second quarter on lower sales at its stores in the United States and Europe. The company reported a loss of $113 million, compared with a year-earlier loss of $36 million.
Net sales for the quarter, ended August 3, dropped 6.9% to $2.38 billion. Same-store sales declined 3.5% in the U.S. and 3.8% abroad. The retailer attributed the decline primarily to decreases in the juvenile and entertainment (which includes electronics, video game hardware and software) categories.
Interim CEO Antonio Urcelay said the retailer is “intensely focused” on finalizing plans for the holiday season to ensure it is well-positioned to compete.
“We believe that the initiatives we have recently announced in the U.S., including an enhanced Price Match Guarantee and a comprehensive suite of programs to encourage early buying, in combination with our expertise in the identification and ownership of the hottest toys, will strongly appeal to consumers as they develop their holiday shopping lists,” he said.
Sycamore takes 8% stake in Aeropostale
New York — Private-equity firm Sycamore Partners disclosed through a filing with the U.S. Securities and Exchange Commission on Tuesday that an affiliate, Hummingbird LLC, had taken an 8% stake in Aeropostale.
Sycamore through its Hummingbird LLC unit, bought about 6.3 million shares of Aeropostale, according to the filing. That would make it the retailer’s fourth-largest shareholder, according to data compiled by Bloomberg.
Nordstrom announces two new Rack locations
Seattle — Nordstrom announced plans for two new Nordstrom Rack stores, one in Nevada, and the other in Massachusetts.
The retailer said it will open a 36,000-sq.-ft. Nordstrom Rack in fall 2014 at The Shops at Summerlin, a 1.6 million-sq.-ft. mixed-use center in the Las Vegas suburb of Summerlin.
"We’ve known for a long time that we wanted to be in Summerlin," said Geevy Thomas, president of Nordstrom Rack. "The Shops at Summerlin is a great fit for the Rack and we’re excited about this opportunity to bring our take on the ultimate treasure hunt to customers in the western Las Vegas valley."
Currently, Nordstrom serves customers at two Las Vegas area locations: a full-line store at Fashion Show Mall and a Nordstrom Rack at Stephanie Street Center.
In Massachusettes, Nordstrom Rack will open at University Station, in Westwood. The 35,000-sq.-ft. store is due to open in spring 2015. University Station is a two million-sq.-ft. mixed use development.