Toys “R” Us Inc. has reported its comparable store net sales and gross margin results for the year-to-date and nine-week holiday periods, which ended on January 3.
Year-to-date comparable store net sales decreased .3 percent, while for the holiday period, comparable store net sales decreased 2.7 percent. There was an increase in gross margin dollars for the year-to-date and holiday periods, due to a gross margin increase in gross margin dollars compared to last year, reported as a result of the company’s improved promotional and pricing strategy. The figures exclude the impact of foreign currency translation.
For the year-to-date period, there was a 1.3 percent decrease in comparable store net sales, due to more disciplined promotions and more rational pricing, and an estimated 100 basis point gross margin rate improvement leading to an increase in gross margin dollars. Comparable store net sales for the holiday period decreased 5 percent and gross margin as a percentage of net sales compared to last year increased over 200 basis points, resulting in an increase in gross margin dollars.