Toys R Us Earnings Take A Beating

Toys R Us Inc. on Monday reported a 56 percent drop in third quarter earnings on 5 percent revenue growth in what the world’s biggest toy retailing chain said reflected a weak retail climate.

Earnings for the quarter ended Oct. 28 were $20.9 million, or 8 cents a share, down from $47.4 million, or 17 cents a share, a year earlier.

The results were slightly below the average estimate of 11 cents share that Zacks Investment Research found in its survey of 14 analysts in advance of the report.

On the New York Stock Exchange, Toys R Us was off 37-1/2 cents at $23.50 a share.

Sales for the quarter rose to $1.715 billion from $1.631 billion a year ago.

Michael Goldstein, chief executive officer, said a recent rebound in the video game business had not fully offset a reversal of the big business in Power Rangers action figures.