Toys R Us shelves IPO plans

'Unfavourable' market conditions blamed; Q4 and FY results show sales struggle.
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Toys R Us has dropped plans for an IPO, citing unfavourable market conditions and executive leadership transition as reasons.

The retailer also posted disappointing Q4 and 2012 full year results.

For the fourth quarter, the total company reported net sales of $5.8 billion, a decrease of $155 million compared to the prior year. Excluding the impact of foreign currency translation, net sales decreased $114m.

Meanwhile, for the full year, the total company reported net sales of $13.5 billion, compared to $13.9 billion in the prior year.

Domestically in Q4, net sales of $3.5 billion decreased 2.1 per cent versus the prior year, driven by a comparable store net sales decline of 4.5 per cent.

The Entertainment category (which includes electronics, video game hardware and software) continued to be the weakest, with net sales decline of 11.1 per cent.

Internationally, Q4 net sales of $2.3 billion decreased by 3.4 per cent versus the prior year driven by a comparable net sales decline of 5.4 per cent.

CEO Jerry Storch, who announced plans to step down back in February, said Toys R Us is looking to expand its global reach going forward - including throughout China and Southeast Asia.

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