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Web sales climb 10% for Toys ‘R’ Us in 2012
But total sales fell and the toy retailer withdrew its aging IPO registration.
It was soft year for Toys ‘R’ Us Inc. in 2012 with only e-commerce showing sales growth.
For the fiscal year ended Feb. 2, Toys ‘R’ Us, No. 29 in the Internet Retailer Top 500 Guide, reported:
- Online sales of $1.10 billion, up by 10% from $1.00 billion in 2011.
- Domestic sales of $8.14 billion, down by 2.9% from $8.39 billion.
- International sales were $5.39 billion, a 2.2% decrease from $5.51 billion.
- Total sales of $13.543 billion, down by 2.6% from $13.909 billion.
- Comparable-store sales, which include e-commerce, declined 3.5% in the U.S. and declined 5.0% internationally.
- Net income of $39 million, down by 74.2% from $151 million in 2011.
The company attributed the decline in overall sales primarily to the dip in comparable-store sales. Domestic same-store sales declined mainly because of decreases in the company’s entertainment, juvenile and baby, and core toy categories, the company says. “The decrease in our entertainment category was primarily due to decreased sales of video game software and systems,” Toys ‘R’ Us says. “The decrease in our juvenile (including baby) category was predominantly due to decreased sales of apparel and furniture. The decrease in our core toy category was primarily due to decreased sales of action vehicles.”
International comparable-store sales fell mainly because of declines in core toy, seasonal and entertainment categories, the company says. The decrease in its core toy category was attributed to decreased sales of action figures and the decline its seasonal category stemmed from decreased sales of outdoor products, Toys ‘R’ Us says. The decrease in its entertainment category was caused by decreased sales of video game systems and software.
The earnings decrease was attributed mainly to income tax expense and an increase in interest expense.
On Friday the company filed documents with the U.S. Securities and Exchange Commission to withdraw its registration for a proposed initial public stock offering “due to unfavorable market conditions and the company’s recently announced executive leadership transition.” The company announced in February that Jerry Storch will step down from his role as CEO, but remain chairman of the multichannel toy retailer’s board. Storch will continue as CEO during a search for his replacement, the company says.
The IPO registration was originally filed in May 2010.
For the fourth quarter, Toys ‘R’ Us did not break out e-commerce revenue but did report:
- Total sales of $5.770 billion, a 2.6% decline from $5.925 billion.
- Net income of $239 million, a decrease of 68.1% from $749 million in Q4 2011.