Web sales at Toys R Us grow slightly in Q1

Sales at ToysRUs.com grew 2.8% in the first quarter from the first quarter a year ago, Toys R Us Inc. reported today. However, taking into account last year’s revenue at ToysRUs.com-Japan, which Toys R Us sold last year to Toys R Us-Japan, web sales were 7% lower than last year’s first quarter, at $53 million from $57 million.

Operating loss for ToysRUs.com in Q1 was $4 million, down from $8 million a year ago.

Companywide sales for Toys R Us were down 2.6% to $2.06 billion in the quarter from $2.11 billion a year ago. The company reported a net loss of $28 million, compared with a net loss of $26 million for the same period last year.

In the U.S. Toy Store division, comparable store sales decreased 5.6% for the first quarter of 2004. Video game sales, which fell 27% from the same period last year, were responsible for most of the decline, the company said. Internationally, comparable toy store sales decreased 3.1% during the first quarter. Babies R Us division total sales increased by 9.6% versus the same period last year and comparable store sales rose 4.6%.

"The liquidation of inventories of several competitors contributed to lower than planned toy sales in the first quarter," said John Eyler, chairman and CEO. "We effectively improved margins and controlled expenses and inventory levels during the quarter to offset most of the impact of the sales decline in our toy and video game businesses. Our juvenile business remained strong, and Babies R Us continued to perform well."