Toys R Us makes $60m loss in Q1

But this is an improvement over the $67m loss made during the same period last year.
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Retail giant Toys R Us posted a $60m loss for its financial quarter ending April 28th, 2012.

However this was a $7m improvement compared to the same period last year, where the retailer made a $67m loss.

Net sales reached $2.6 billion, a decrease of 0.9 per cent or $24 million year-on-year.

Toys R Us says learning and core toy categories continued to perform well, generating net sales growth of 6.7 per cent and 4.7 per cent respectively.

The entertainment category, which includes sales of electronics and video games, was down 14 per cent. Toys R Us said in a statement ‘this reflects the ongoing weakness in the global video game business’.

Jerry Storch, Chairman and CEO, Toys R Us chairman and CEO Jerry Storch said: “We are pleased with the increased profitability of our overall business in the first quarter and especially proud of our US business results.

“On a global basis, we improved gross margin, as a percentage of net sales by 1.1 percentage points, as a result of our focus on product differentiation and driving sales mix toward higher margin products.

“Additionally, the investments we made last year in strengthening our omnichannel capabilities continue to deliver results, including strong revenues from our e-commerce operations in the first quarter.”

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