Toys”R”Us reported financial results for the second quarter ended Aug. 3 on the heels of a special event the retailer held at its flagship location in the heart of New York City's Time Square and which detailed its initiatives as it prepares to tackle the holiday shopping season.
The retailer is still weathering the challenging economic climate; but despite a comparable store sales decrease for the quarter of 3.5% in the domestic segment and 3.8% in the international segment, comparable store net sales improved 490 basis points in the domestic segment and 200 basis points in the international segment compared to the prior-year quarter.
The overall decrease in comparable store net sales resulted primarily from decreases in the juvenile and entertainment categories, which include electronics, video game hardware and software.
Toys”R”Us interim CEO Antonio Urcelay is focusing on the comparable store sales improvement, particularly in light of the strategy the retailer plans to follow as the holiday season approaches.
“The team has been intensely focused on finalizing our plans for the upcoming holiday season to ensure we are well-positioned during the highly competitive months ahead,” said Urcelay. “We believe that the initiatives we have recently announced in the U.S., including an enhanced Price Match Guarantee and a comprehensive suite of programs to encourage early buying, in combination with our expertise in the identification and ownership of the hottest toys, will strongly appeal to consumers as they develop their holiday shopping lists.”
The company's net sales were $2.4 billion, a decrease of $175 million or 6.9% versus the prior year. The decline in net sales for the quarter was primarily attributable to a decrease in comparable store net sales, as well as a foreign currency translation impact of $66 million.