By Dhanya Skariachan
NEW YORK Dec 7 Toys R Us Inc reported
a wider third-quarter net loss on Friday as the world's largest
dedicated toy retailer was hurt by weaker sales and higher
The New Jersey-based retailer, which operates stores under
its namesake brand and the Babies R Us and FAO Schwarz labels,
said its net loss widened to $105 million in the quarter, ended
Oct. 27, from $93 million a year earlier.
Sales fell 3.4 percent to $2.6 billion, while interest
expense rose by $29 million to $135 million.
The increase in interest expense was mainly due to the
issuance of the senior notes due fiscal 2017, and the repayment
of the outstanding principal amount on its senior notes due
fiscal 2013, the company said in a statement.
Same-store sales fell 4.1 percent in its domestic unit,
while those at its international segment fell 4.6 percent as
economic weakness in Europe and Japan hurt demand.
The company tied the sales weakness in its U.S. unit on
fewer promotional events and this year's earlier layaway
program. Retailers do not book layaway sales until they are
fully paid for.
Toys R Us was taken private in 2005 by Kohlberg Kravis
Roberts, Bain Capital and Vornado Realty Trust
in a $6.6 billion deal. The stakes are high for the retailer
this holiday season as it has yet to return to being a public
company after filing for an initial public offering in May 2010.