Toys 'R' Us Reports Declining Holiday Sales
Adding to its list of woes, Toys 'R' Us reports declining sales in the hottest retailing season in seven years.
Toys 'R' Us (TOY) has reported yet another setback. U.S. toy-store sales for the holiday season were down 2% over the previous year. This is very bad news for the company, given that this holiday season was the strongest for retailers in seven years.
Toys 'R' Us stock plunged 15% this morning on the news, and management endorsed a fourth-quarter (January) earnings-per-share figure that is about 35% below prior estimates, about $0.90 instead of about $1.40. For a company that typically earns a vast majority of its money during the fourth quarter, this is especially disastrous.
Joseph Beaulieu does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.