Toys R Us Warns of Lower 4th-Quarter Profit

Toys R Us Inc. warned that earnings will be below expectations for the fiscal fourth quarter and fiscal 1997, mostly because of higher costs for promotion and distribution. The toy retailer expects profit of $1.31 a share in the latest quarter, less than the $1.52 expected by analysts surveyed by IBES International Inc. For the year ended Feb. 1, the company expects earnings of $1.70 per diluted share, below the $1.90 a share Wall Street analysts had anticipated. Toys R Us also said that, as part of a planned transition, chief operations officer Robert C. Nakasone, 50, is replacing Chief Executive Michael Goldstein, who becomes chairman. Chairman and founder Charles Lazarus, meanwhile, became chairman emeritus. The moves are effective immediately. Bruce W. Krysiak, 47, president and chief operating officer of Dollar General Corp., will take over Nakasone’s positions as president and chief operating officer on April 13. The company will report earnings on March 11. Rochelle Park, N.J.-based Toys R Us shares fell $1.94 to close at $27 on the New York Stock Exchange.