The end is near. As Rick pointed out last month, Toys "R" Us
For the first quarter ended April 30, Toys "R" Us lost $41 million, or $0.19 per share, compared with a loss of $28 million, or $0.13 per share, a year ago. Net sales increased 3.6% to $2.1 billion, but a large portion came from lower-margin video products.
In the U.S., net sales were nearly unchanged from a year ago at $1.06 billion, but its operating loss more than doubled to $32 million. Internationally, the results appeared to be much better at first glance as overall sales jumped 11.3%.
However, excluding exchange rates, sales increased just 5.3%, while operating losses grew 43% to $20 million. Its online business did a bit better, increasing sales by 20.8% to $64 million. This segment also produced an operating loss, but it was reduced from $5 million to $2 million.
Finally, the one bright spot continues to be Babies "R" Us, which posted an increase in sales of 10.4% and even managed to generate an operating profit of $65 million.
It's a shame things had to end so poorly for Toys "R" Us, but it just wasn't able to compete with the discounted toys being sold at Wal-Mart
For more details on the final moments of Toys "R" Us, check out Rick's Outgrowing Your Toys.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies discussed in this article.