Sales at Toysrus.com increased 57% to $46 million in the first quarter from $29 million in the first quarter of last year, Toys R Us Inc. reported today. Operating losses decreased to $14 million.
The sales increase was driven by increased sales at Babiesrus.com and improved sales in the core toy and Toys R Us’s Imaginarium businesses which were offset somewhat by slower growth in video. Babiesrus.com sales grew over 85% in the first quarter, benefiting from better merchandise selection coupled with operating on the Amazon.com platform during 2002, the company said. Expenses were reduced by the elimination of the duplicative costs of operating the Babiesrus.com web site and distribution facility during the first quarter of 2001 as well as the continued effort of the Toysrus.com team to reduce overhead expenses as a step towards profitability.
Companywide sales for the first quarter increased 2%, to $2.1 billion from the first quarter of 2001. The company reported a first quarter 2002 net loss of $4 million. Comparable store sales grew 5% and comparable stores using Toys R Us’s new Mission Possible format grew 7%.
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