This past Tuesday, Toys “R” Us Inc. reported financial results for the second quarter ended August 1. For the quarter, Adjusted EBITDA was $122 million, compared to $83 million in the prior year period. In addition, domestic operating performance improved significantly as domestic gross margin rate remained strong. Internationally, the company continued its positive comparable store net sales trend with particular strength in Canada, Central Europe, China, and Southeast Asia.
Consolidated net sales were $2.3 billion, a decrease of $147 million compared to the prior year period. Excluding a $144 million negative impact of foreign currency translation, net sales declined $3 million. The relatively flat net sales resulted from an increase in international comparable store net sales, offset by a decrease in domestic comparable store net sales.
International comparable store net sales were up 3.3 percent, primarily driven by increases in the learning, baby, and core toy categories, partially offset by a decrease in Toys “R” Us’ entertainment category. Domestic comparable store net sales were down 2.5 percent, primarily due to a planned decrease in promotional activity.
With the holiday shopping season arriving, Toys “R” Us will hire 40,000 employees at its stores, distribution centers, and warehouses nationwide. Interviewing for seasonal positions begins this month at stores, with new hires starting work in October. Applications are being accepted at the company’s Holiday Hiring website.