US: Toys R Us reports Q1

Revenues were on the up again in Toys R Us' latest set of financials.

Author:: Ronnie Dungan
Publish date:: Jun 13, 2008
Social count:: 0

The retail giant reported first-quarter earnings, and the future direction of its debt will likely be driven by how far appetite for toys holds up in this year's holiday season.

Revenues rose 5.3 percent in the first quarter of 2008, due to foreign currency gains, higher sales over the Internet and the addition of 16 net new stores,

Earnings before interest, taxes, depreciation and amortization for the quarter, however, slipped 2.5 per cent to $114 million.

"Given that Toy generates 70 percent of its EBITDA in the fourth quarter, we believe the slight decline in first-quarter EBITDA will not have a material impact on the company," analysts said.

And EBITDA for the 12 months ended with the first quarter increased by 7.4 percent "given Toy's continued operational improvements," they said.

The retailer is trying to increase traffic at its Toys "R" US. stores by situating them next to its Babies "R" Us locations."

The cost to insure Toy's debt with credit default swaps fell to around 801 basis points on Wednesday, or $801,000 per year for five years to insure $10 million in debt, from 805 basis points at Tuesday's close, according to Markit Intraday.

Toys R Us UK has announced its latest financials with sales up but profits down.

Full year profits for Toys R Us in the US were up 43 per cent year on year.

Toys R Us Inc has reported results for its first quarter ended May 2nd, 2009.

Toys R Us sales up in December, helped by online sales, while overall Christmas sales fell.

The retailer narrows net loss on last year’s results but a decrease in promotional activities, baby and entertainment segments have lead the firm to a first quarter loss of $140 million.

Foreign currency gains and new stores see Q1 revenues rise.

‘Today marks the dawn of a new era at Toys R Us, where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,’ says Toys R Us’ Dave Brandon.

brian goldner

The global toymaker has posted a net loss of $112.5 million which includes after-tax expenses of $61.4 million associated with Toys R Us

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