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Toys R Us Q1 Profits Up 41%

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PARAMUS, NJ/USA (17 May 2000)–Us giant toy chain and bike retailer Toys R Us announced that its first quarter profits from operations rose 41%. The company attributes improved customer service and the new look of its stores as reasons for success, reports the Associated Press. For the quarter that ended on 29 April Toys R […]

PARAMUS, NJ/USA (17 May 2000)–Us giant toy chain and bike retailer Toys R Us announced that its first quarter profits from operations rose 41%. The company attributes improved customer service and the new look of its stores as reasons for success, reports the Associated Press. For the quarter that ended on 29 April Toys R Us earned US$24 million, compared to US$17 million a year ago. The results do not include pre-tax gain of about US$315 million from the initial public offering in April of its Japanese subsidiary, Toys R Us-Japan, and a net loss of US$9 million related to the company’s share of its toysrus.com Internet unit. Sales rose to US$2.32 billion from $2.17 billion.
The first quarter was a strong showing for Toys R Us following a turbulent 1999, when the retailer faced slumping sales and profits at its stores and constant trouble with its website.
Sales at US stores open at least a year rose 2% in the first quarter, while overseas stores increased sales by 7%, with stores in France and Germany reporting double-digit increases. Toys R Us is currently revamping its Web division to better handle customer traffic, especially during the upcoming holiday season. The company expects that Toysrus.com will have about three times the capacity to process orders as compared to last Christmas, when the site crashed when too many people tried to log on.
Toys R Us operates 1,553 stores, including 708 toy stores in the United States; 468 international toy stores, including franchise stores; 203 Kids R Us children’s clothing stores, 134 Babies R Us stores; and 40 Imaginarium stores. (JW)

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