The toy retailer reported a net loss of $624m due to declines in same-store sales and the baby category.
According to the toy retailer, the decline was largely attributable to a decline in same-store sales and, most notably, in the baby category. However, an increase in consolidated e-commerce sales partially offset the decrease.
Meanwhile, consolidated same-store sales decreased 4.4%, which was driven by a 7% decline domestically and offset by a 0.4% increase within the company’s international category (excluding Canada) as a result of growth in Asia.
The company also reported that its operating loss was $208m, compared to $40m in the year prior. Furthermore, domestic segment operating loss increased by $95m, due to a reduction in gross margin dollars, and international operating earnings (excluding Canada) decreased by $20m. However, corporate overhead increased by $53m due to the gain in Q3 2016 following the sale of the FAO Schwarz brand. Adjusted EBITDA for the quarter was also negative $97m, compared to a positive $5 million last year.
Finally, Toys R Us reported a net loss of $624m, compared to $160m in 2016.