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Net sales for the first quarter ended May 1, 2010 were $2.608 billion, an increase of 5.3% compared to $2.477 billion for the first quarter of fiscal 2009. Comparable store net sales grew by 1.9% in the Domestic segment, while comparable store net sales declined by 1.4% in the International segment. "We are very pleased with our operating results for the first quarter, driven by the team’s continued discipline in planning and achieving sales increases, expense control and margin enhancement," said Jerry Storch, Chairman and CEO, Toys"R"Us, Inc. "As we move forward, our focus remains on delivering differentiated product offerings, providing unique value and exceptional service to our customers, and preparing our stores for the all-important holiday selling season." For the first quarter of fiscal 2010, gross margin as a percentage of net sales improved to 36.2%, compared to 35.9% in the first quarter of fiscal 2009. Operating earnings were $5 million for the first quarter of fiscal 2010, compared to $21 million for the first quarter of fiscal 2009. Domestic For the first quarter of fiscal 2010, net sales were $1.671 billion, compared to $1.623 billion in the first quarter of fiscal 2009. Comparable store net sales were up 1.9%, primarily due to an increase in the juvenile and seasonal categories, partially offset by weakness in the entertainment category (which includes video game hardware and software). For the first quarter, gross margin, as a percentage of net sales, remained consistent at 35.9% compared to the same period in the prior year. International For the first quarter of fiscal 2010, net sales were $937 million, compared to $854 million for the same period in the prior year. Comparable store net sales were down 1.4% primarily due to decreases in the entertainment (which includes video game hardware and software) and seasonal categories. For the first quarter, gross margin, as a percentage of net sales, increased to 36.8%, compared to 36.1% for the same period in the prior year primarily as a result of improvements in sales mix towards sales of higher margin products. Additionally, on April 15, 2010, the company acquired the remaining approximate 9% outstanding shares of its Toys—Japan affiliate. As a result, Toys—Japan is now a 100%-owned subsidiary of the company. |
