Toys R Us Earnings Will Miss Forecasts
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Toys R Us Inc., the No. 1 U.S. toy chain, said its second-quarter and full-year profit will fall short of Wall Street forecasts, sapped by the slowing economy and spending to remodel stores.
The profit warning sent the toy retailer’s shares tumbling nearly 11%, after a delayed opening on the New York Stock Exchange. The stock recovered to close down 35 cents at $24.80.
The Paramus, N.J.-based retailer, in a filing with the Securities and Exchange Commission, said it expects a second-quarter loss of about 14 cents a share.
Analysts’ estimates for the period ending Aug. 4 ranged from a loss of 6 cents to 14 cents a share, with the consensus estimate at a loss of 10 cents, according to First Call/Thomson Financial.
As a result of the anticipated second-quarter loss, Toys R Us also said it expects full-year earnings to fall a bit short of analysts’ consensus estimate. Analysts on average had expected a full-year profit of $1.31 a share. Their estimates ranged from $1.20 to $1.39.
Second-quarter earnings are scheduled to be released Aug. 20.
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