The retailer reported a 39.3 per cent fourth quarter increase in net earnings to $312m, up from $224m the previous Q4. Operating earnings increased 17.5 percent to $671m while net sales rose 2.6 per cent companywide to $5.827bn.
For the year, it recorded a 40.4 per cent increase in net earnings to $153m. Operating earnings in fiscal 2007 rose 7.2 per cent to $696m while net sales increased 5.7 per cent to $13.794bn.
Jerry Storch, TRU’s chairman and CEO commented: “Better gross margins, improved comparable store sales and the positive impact of new store openings all contributed to higher net earnings for both the fourth quarter and the year. These results are especially gratifying given the difficult economic climate and the unique challenges experienced by the toy industry during the past year.”
Like for like net sales rose 3.2 percent at TRU’s US stores. Net sales for the period decreased 0.5 per cent to $2.897bn.
Operating earnings for the US toy stores division in the fourth quarter were $360 million, up from $318 million in fiscal 2006.
International net sales rose 1.2 per cent during the quarter, while net sales rose 8.4 per cent, to $2.331bn, primarily due to changes in foreign currency translation of $193m, new store openings and the increase in comparable store net sales.
For the year, comparable International store net sales rose 2.7 per cent, while net sales increased 11.8 per cent, to $5.344bn.
The International division saw operating earnings rise to $305 million during the quarter, compared with $251 million in fiscal 2006. For the year, operating earnings were $336 million, up from $233 million.