U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Date of Report
(Date of earliest event reported):
May 13, 2002
Toys "R" Us, Inc.
(Exact name of registrant as specified in its Charter)
Delaware 1-11609 22-3260693
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
461 From Road, Paramus, New Jersey 07652
----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 262-7800
Item 5. Other Matters
This report relates to certain announcements made by the Registrant in the
following Press Release, dated May 13, 2002:
FROM: Ursula H. Moran (201) 802-5444 Louis Lipschitz (201) 802-5548
Investor Relations Chief Financial Officer
FOR: Toys "R" Us, Inc. Rebecca Caruso (201) 599-8090
(NYSE: TOY) Media Relations
FOR IMMEDIATE RELEASE
TOYS "R" US PROVIDES GUIDANCE ON FIRST QUARTER RESULTS
--First Quarter Results To Be Better Than Anticipated;
Company Expects To Complete Previously Announced Equity
Offerings By End of Month--
PARAMUS, NEW JERSEY, MAY 13, 2002 - Toys "R" Us, Inc. today said that it
expects to report first quarter results that are better than current
consensus estimates.
For the first quarter ended May 4, 2002, the company anticipates a loss
per share between ($0.02) and ($0.03). Current consensus estimates for
the quarter are for a loss of ($0.09) per share. The company reported a
net loss of ($18) million, or ($0.09) per share for the first quarter of
fiscal 2001.
Total net sales for the quarter increased 2%, to $2.1 billion, compared
to the first quarter of last year. Comparable sales for the first quarter
of fiscal 2002 were down 2% in the U.S. toy stores, up 10% in the
International toy stores (in local currency), and up 3% in the
Babies-R-Us division. Sales at Toysrus.com increased 57% to $46 million
from $29 million in the first quarter of 2001.
John Eyler, Chairman and Chief Executive Officer, stated, "Our comparable
U.S. toy store sales experienced softness during the quarter due to two
factors - a pronounced slowdown in the video business in April, and
weakness in our outdoor seasonal categories. Comparable store sales in
video and seasonal categories were negative for the quarter. However,
comparable store sales of core toy merchandise in the U.S. toy stores
increased 5% for the quarter. Our renovated Mission Possible stores
maintained a positive sales gap over our unrenovated stores with the 2001
Mission Possible stores achieving a 7% comparable store sales gap in the
first quarter. Comparable store sales in the Kids "R" Us division fell
below last year's levels primarily due to unfavorable weather and its
impact on the sale of spring apparel."
Mr. Eyler continued, "Our attention to gross margin improvements and
ongoing expense reduction initiatives lead us to expect that we will
improve operating results for the first quarter. In particular, operating
earnings in our U.S. toy stores and our Babies "R" Us stores are
anticipated to exceed prior year results. We also believe that we will
reduce operating losses at Toysrus.com for the quarter."
Toys "R" Us also said that it expects to complete its previously
announced offerings of equity and equity-linked securities before the end
of the month.
The company plans to release earnings for the first quarter on Monday,
May 20 before the market opening. Interested individuals may listen to
the conference call by going to the Investor Broadcast Networks' Vcall
website located at http://www.vcall.com/NASApp/Vcall/EventPage?ID=81257
or by accessing the Company's Internet at www.toysrus.com (go to "About
Toys "R" Us" and then to "Investor Relations") at least fifteen minutes
prior to the beginning of the call to register, download and install any
necessary audio software. For those who cannot listen to the live
broadcast, a replay will be available beginning approximately one hour
after the event through June 20, 2002 at the Vcall website.
A replay of the call will also be available on May 20 from 11 a.m.
to 6 p.m. (ET) and then again on May 21 from 8 a.m. to 6 p.m. (ET) by
dialing 800-633-8284 (from within the U.S.) or 858-812-6440
(from outside the U.S.). The
reservation number is 20569891.
Toys "R" Us, one of the world's leading retailers of toys, children's
apparel and baby products, currently sells merchandise through 1604
stores worldwide: 698 toy stores in the United States; 511 international
toy stores, including licensed and franchise stores; 183 Kids "R" Us
children's clothing stores, 169 Babies "R" Us stores and 43 Imaginarium
stores, and through its Internet sites at www.toysrus.com,
www.babiesrus.com and www.imaginarium.com.
This press release contains certain "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbors created thereby. Such
statements should be considered as subject to risks and uncertainties
that exist in the company's operations and business environment that
could render actual outcomes and results materially different than
predicted. Factors that could constitute risks are set forth in documents
filed by the company with the Securities and Exchange Commission.
************************************************************************
Registration statements relating to the common stock and equity security
units have been filed with the Securities and Exchange Commission but
have not yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statements
become effective. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale
of these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state.
########
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 13, 2002
By: /s/ Louis Lipschitz
Name: Louis Lipschitz
Title: Executive Vice President and
Chief Financial Officer
3