Despite a full-year sales dip the retailer increases its profits by four per cent in Q4.
Toys R Us made $343 million in the 13 weeks to January 29th, $13 million more than in the same period in 2010.
Although Q4 sales were $47 million less than last year’s, Toys R Us boosted its profits thanks to reduced expenses and strong sales from its international segment.
The retailer said the overall decrease in sales was due to the company's decision to open less Toys R Us Express stores during the Christmas sales period.
In the full-year, the learning and core toy categories grew five and 4.3 per cent respectively. The entertainment category, which includes electronics and video games, was down nine per cent.
In Toys R Us' international segment, fourth quarter sales rose 3.2 per cent to $2.3 billion, with learning and core toy categories growing five and 4.3 per cent respectively.
Jerry Storch, chairman and CEO of Toys R Us said: "We increased our gross margin rate during the year through our strategies to expand exclusive product offerings and deepen relationships with manufacturers."
He added: "As we move forward in 2012, our team remains focused on offering customers the differentiated product selection, product presentation, service, and in-store experience that build upon our position as the premier shopping destination for toys and juvenile products."