Toys ‘R’ Us posts wider Q3 loss under weight of interest expenses
New York -- Toys “R” Us posted a wider loss for its fiscal third quarter due primarily to an increase in interest expenses. The retailer said it lost $105 million for the quarter ended Oct. 27, compared with a loss of $93 million in the year-ago period.
Toys “R” Us attributed the wider loss to a $29 million increase in its interest expenses due to an issuance of senior notes and repayment of other senior note
The company said net sales fell 3.4% to $2.6 billion due to negative effects of foreign exchange rates. Same-store sales fell 4.1% in the United States. The chain said the decrease was partially due to a less promotional stance and an earlier start to its layaway program, which was launched seven weeks before the end of the third quarter. (Sales related to layaway items can not be recognized until customers pick up their orders.)
“Our primary focus during the third quarter was making strategic preparations for the important holiday season,” said Jerry Storch, Toys “R” Us chairman and CEO. “We believe the new programs we’ve introduced such as Free Layaway, Price Match Guarantee, Hot Toy Reservation and our strengthened omnichannel offerings, including Ship from Store, have benefitted our customers and provided even more reasons to shop with us.”