Toys R Us Profit Declines 35%

Toys R Us Inc. said its first-quarter earnings fell 35% to $19.2 million, or 7 cents a diluted share, from a year ago, but analysts shrugged off the decline as expected and unimportant in an industry in which the fourth quarter matters the most. The retailer’s sales rose 5% to $2 billion. Sales at its U.S. stores open at least a year rose just 2%, after having benefited from new items such as “Star Wars” figures and Tamagotchi virtual pets. The company said the results were expected, coming on top of an exceptionally strong quarter a year ago. They also reflected the company’s restructuring efforts, which include inventory reduction.