Faced with weakened sales and increasing competition from discount retailers, Toys R Us Inc. said Thursday it would close 25 stores worldwide and consolidate operations to boost profits.

The Paramus, N.J.-based company said it will close three Toys R Us and 12 Kids R Us stores in the United States and 10 toy stores in Europe and will consolidate three distribution centers and seven administrative facilities.

“Retailer competition is very fierce right now. It’s very tough out there,” said Louis Lipschitz, the company’s chief financial officer.

“We’re a very strong company, very financially sound and this is a way of making sure we stay financially sound,” Lipschitz said. “This is going to improve our profits.”

He would not specify where the stores to be closed were located, saying the U.S. operations were in the Southwest, Midwest and California. He declined to say how many employees would lose their jobs, but called it a small number.