March 25, 2015 // Franchising.com // WAYNE, NJ – At presentations today for investors, industry analysts and the media, Toys"R"Us, Inc. provided an update on its strategy to improve the company’s operational performance, as it continues its work to position the business for long-term profitable growth. Antonio Urcelay, Chairman of the Board and Chief Executive Officer, Toys"R"Us, Inc.; Hank Mullany, President, Toys"R"Us, U.S.; and Mike Short, Executive Vice President and Chief Financial Officer, Toys"R"Us, Inc., delivered a comprehensive review of the company’s fiscal 2014 performance and discussed the next phase of its "TRU Transformation" strategy.
"A year ago, we introduced a new strategic plan, with initial efforts concentrated on strengthening the foundation of the company so revenue and profits can grow in the future," Mr. Urcelay said. "During 2014, we made steady progress in implementing this plan, successfully delivering on our commitment to slow sales decline, stabilize cash flow and improve EBITDA. We also made significant process and organizational improvements, addressing a number of important executional issues. As a result, during the year, global Internet sales continued to grow, benefitting from our strengthened omnichannel fulfillment model, U.S. margin improved due to disciplined promotional activity and inventory management, and customer satisfaction metrics confirmed that changes we have been making provided a better shopping experience in-store and online. During the year, we also grew our international presence, strengthened our leadership team and formalized a global approach to doing business. Still, we know there is far more work to be done."
Mr. Urcelay continued, "Our strategy remains the same, but will evolve in 2015 as we continue to strengthen the foundation of the company in order to achieve sustainable growth in the future. We anticipate this will be another year of significant change and we will take aggressive steps in the months ahead to further right-size the cost structure of the business. This includes designing a more streamlined organization that will allow us to create greater operational efficiencies across our global organization."
During 2015, the objective of the company’s "TRU Transformation" strategy will be to continue to slow the company’s sales decline, strengthen margin and improve EBITDA to effectively position the business to become fit for growth. Company-wide efforts will focus on four key priorities:
To learn more about the "TRU Transformation" strategic update, please visit the company’s corporate website, Toysrusinc.com, where it has posted presentation materials.
Toys"R"Us, Inc. is the world’s leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 872 Toys"R"Us and Babies"R"Us stores in the United States, Puerto Rico and Guam, and in more than 725 international stores and over 235 licensed stores in 36 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys"R"Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys"R"Us, Inc. can be found on Toysrusinc.com. Follow Toys"R"Us, Babies"R"Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.
All statements that are not historical facts in this press release, including statements about our beliefs or expectations, are forward-looking statements. These statements are subject to risks, uncertainties and other factors, including, among others, the seasonality of our business, competition in the retail industry, changes in our product distribution mix and distribution channels, general economic factors in the United States and other countries in which we conduct our business, consumer spending patterns, birth rates, our ability to implement our strategy including implementing initiatives for season, our ability to recognize cost savings, marketing strategies, the availability of adequate financing, access to trade credit, changes in consumer preferences, changes in employment legislation, our dependence on key vendors for our merchandise, political and other developments associated with our international operations, costs of goods that we sell, labor costs, transportation costs, domestic and international events affecting the delivery of toys and other products to our stores, product safety issues including product recalls, the existence of adverse litigation, changes in laws that impact our business, our substantial level of indebtedness and related debt service obligations, restrictions imposed by covenants in our debt agreements and other risks, uncertainties and factors set forth under Item1A entitled "RISK FACTORS" of Toys"R"Us, Inc.’s Annual Report on Form 10 K for the fiscal year ended February 1, 2014 and its other reports and documents filed with the Securities and Exchange Commission. In addition, we typically earn a disproportionate part of our annual operating earnings in the fourth quarter as a result of seasonal buying patterns and these buying patterns are difficult to forecast with certainty. These factors should not be construed as exhaustive, and should be read in conjunction with the other cautionary statements that are included in those reports and documents. We believe that all forward-looking statements are based on reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, one should not place undue reliance on these statements. Forward looking statements speak only as of the date they were made, and we undertake no obligation to update these statements in light of subsequent events or developments unless required by the Securities and Exchange Commission’s rules and regulations. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in any forward looking statement.
SOURCE Toys"R"Us, Inc.