Toys ‘R’ Us problems mount as Q1 loss widens to $111 million
Wayne, N.J. -- Toys "R" Us reported a loss of $111 million for the first quarter, compared with a year-earlier loss of $60 million. It was the struggling chain’s worst quarter in a decade.
Net sales for the quarter, ended May 4, declined 7.8% to $2.4 billion. Same-store sales were down 8.4% domestically and fell 5.8% internationally.
In a statement, Antonio Urcelay, interim CEO, blamed the weak sales on "the ongoing challenges of the global economic environment and the prolonged cool weather conditions around the world," which hurt sales of outdoor toys.
Additionally, the continued weakness in the electronics and entertainment category negatively affected revenues," he said.
Urcelay, who is head of the company's European operations, was named interim CEO in May, replacing Gerald Storch, who stepped down in February.