PARAMUS, N.J. (Bloomberg News Service) —Toys "R" Us Inc., the largest U.S. toy chain, said fiscal second-quarter profit fell 75 percent on declining sales in its U.S. stores and a loss at its Internet division.
Net income in the quarter ended July 29 fell to $3 million, or 1 cent a share, from $12 million, or 5 cents, a year ago. Sales tumbled 9.5 percent to $2 billion from $2.2 billion.
The company, based in Paramus, N.J., said excluding the impact of Toysrus.com, profit rose 6.7 percent to $16 million, or 7 cents a share, from $15 million, or 6 cents, a year earlier. It expects the Internet business to break even in the fourth quarter of 2001 and be profitable in 2002.
Shares of Toys "R" Us, which runs 1,553 stores worldwide, were unchanged at 17 3/8 Friday. They've risen 21 percent this year.