Free Subscription

  • Access 15 free news articles each month

Professional

Try one month for $5
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • Exclusive Masterclass access. Part of Retail Week 2021

Toys ‘R’ Us downgrades FY21 result with $5.1 million loss

Two weeks after noting it delivered an annual revenue of $48.2 million in its first year as a newly consolidated company, Toys ‘R’ Us has released an updated set of figures to the market which paint a less rosy image of its FY21.

According to the business’ financial report for the year, the toys, hobby and baby-goods retailer saw revenue of $21.8 million, and suffered a statutory loss before tax of $5.1 million – more than double the $1.9 million loss it endured in FY20.

The difference is in the details: The new set of numbers include the acquisition of Hobby Warehouse from the 26th of November, acquisitions costs, removes discontinued operations and makes “many other ASX required adjustments”.

After Toys ‘R’ Us, Babies ‘R’ Us, and Hobby Warehouse were purchased by Funtastic in 2020, the combined business soon began shedding its confectionary arms to refocus on the toys category.

And, with the change in focus came a change in warehousing, with Toys ‘R’ Us shifting to a larger DC in July where it began investing in robotics.

“[We’ve] worked diligently and cohesively to reduce disruptions during the recent warehouse relocation and commissioning process, and we are now focused on preparations for the busy November and December trading period,” Toys ‘R’ Us CEO Dr Louis Mittoni said earlier this month.

You have 7 free articles.