Toys “R” Us Narrows 3Q Loss
Wayne, N.J., Toys “R” 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 “R” 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 “R” 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 “R” 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 “R” Us division during the first half of 2005. This past August, Toys “R” Us said it was considering selling its toy business to focus on its Babies “R” Us unit.
Cost Plus 3Q Income Falters Despite Higher Sales
Oakland, Calif., Cost Plus reported net income of $400,000 in the third quarter, down from $900,000 in the year-ago period. The merchant’s sales were up 12% to $190.4 million, helped by comps growth of 0.5%.
Knight Stepping Down at Nike
Beaverton, Ore., Nike Inc. co-founder Philip Knight, 63, is stepping down as president and CEO of the athletic shoe and apparel company he made into a $12 billion brand. His successor will be William D. Perez, president and CEO of S.C. Johnson & Son. Knight, who will retain the title of chairman, is expected to remain an active presence in the company.