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TRU Q3 sales down ahead of holiday shopping season

WAYNE, N.J. — Toys“R”Us' focus on the upcoming holiday shopping season was reflected in its third quarter results, which included a sales decrease. The company reported that net sales for the quarter were $2.7 billion, compared to $2.72 billion in the prior year. The company said it saw continued strength in learning and core toys, while the video game category remains a challenge.

Comparable store net sales decreased by 2.2% in the domestic segment and 3.9% in the international segment. 

Operating loss was $75 million, compared with $62 million in the prior year. Adjusted EBITDA was $36 million, compared with $49 million in the prior year.

Jerry Storch, chairman and CEO of Toys“R”Us Inc., stated, “During the third quarter, we prepared for the upcoming holiday season and took some important steps to position the company for long-term growth.”

Storch also acknowledged the company's growing presence internationally.

“Recently, we acquired the majority stake in our operations in China and Southeast Asia, presenting what we believe will be a significant opportunity for the company. And, just two weeks ago, we opened our first store in Poland. International growth in new and emerging markets remains a key part of our overall business strategy," said Storch.

However, the CEO was sure to point out the company's efforts in the United States.

“At the same time, among our most important strategic priorities in the United States is creating new ways for customers to shop seamlessly between our online and bricks and mortar businesses, wherever, whenever, and however they choose. Important to increasing the depth of our omnichannel services, was the recent opening of our state-of-the-art ecommerce fulfillment center in Nevada, which provides increased capacity to meet the needs of our customers who shop online” concluded Storch.

Whereas the third quarter was about preparing for the holiday season, the fourth quarter will encompass the bulk of the shopping season, making it a make-or-break quarter for Toys"R"Us.

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