Toys “R” Us Inc., reported a not so stellar third quarter. Net sales were $2.018 million, a decrease of $89 million compared to 2016. Excluding a $6 million negative impact from foreign currency translation, net sales declined by $83 million due to the decline in same store sales in the baby category. Partially offsetting the decrease was an increase in consolidated ecommerce sales, according to a press release.
“Our results for the quarter were disappointing. They not only reflect the broad competitive trends across retail, they demonstrate the continued challenges we face in both the baby and learning categories,” said Davide Brandon, Chairman and Chief Executive Officer for Toys “R” Us, Inc. “Though we continue to see growth in our core toy category, we recognize the need for change in order to better meet customers’ evolving shopping preferences.”
Toys “R” Us filed for Chapter 11 bankruptcy in September in an effort to restructure outstanding debt establish a sustainable capital structure that will enable it to invest in long-term growth.
“The financial restructuring process that we kicked off in mid-September was a critical first step, allowing us to restructure our balance sheet and make the necessary investments in the right initiatives needed to reinvent our business and deliver on our commitment to be Champions of Play for kids everywhere and a trusted resource and friend for parents around the world,” said Brandon. “This process won’t happen overnight but I am confident the steps we are taking will meaningfully improve the customer experience.”