Wayne, N.J. – Toys“R”Us said higher expenses and a lower income tax benefit contributed to a $196 million net loss in the first quarter.
The loss, for the three months, ended May 3, laps a year-ago net loss of $111 million.
But the No. 1 toy chain showed strength on the sales front. Fueled by aggressive clearance sales to make way for its holiday assortment, net sales rose 2.9 percent to $2.5 billion despite the impact of unfavorable currency fluctuations, while U.S. comps increased 4 percent on strength in CE, video game hardware and software, learning devices and toys.
During the quarter the company invested $39 million in IT and logistics systems and capabilities, store-related projects, and new store openings as part of its “TRU Transformation” strategy.
“We made capital investments in areas consistent with our strategic priorities, including global e-commerce, U.S. store maintenance and international growth,” chairman/CEO Antonio Urcelay said. “Overall, the team remains keenly focused on the flawless execution of our transformation strategy, as we make the required changes to strengthen the foundation of the company and position it for profitable growth in the future.”