Toy R Us is remaining positive over its first quarter results that demonstrate ‘steady progress’ despite net sales falling six per cent in the May quarter.
While the retailer has narrowed its net loss on last year’s results, a decrease in promotional activities and dip in the baby and entertainment segments have lead the firm to a first quarter loss of $140 million.
The result is an improvement on the $196 million deficit of its 2014 first quarter results. Total sales fell to $2.33 billion from $2.48 billion.
Meanwhile consolidated adjusted EBITDA improved by $43 million, more than doubling since last year’s results.
The results are – according to Antonio Urcelay, chief executive officer of Toys R Us – indicative of the firm’s progress in executing its TRU Transformation strategy.
“During the quarter, we delivered a strong increase in Adjusted EBITDA, which benefited from significant SG&A savings,” said Urcelay.
“While the US experienced softness in comparable store net sales, our US operating performance improved significantly, almost tripling the prior year’s operating earnings. Internationally we continued our positive comparable store net sales trend, where we experience particular strength in China and Southeast Asia.
“We are proud of the success of our Fit for Growth initiative and we would like to thank our employees for their incredible effort on this project. While we will continue to benefit from the savings contributed in future quarters, the heavy lifting around organizational change is largely complete.”