Toys ‘R’ Us has withdrawn its plans to go public in a move that was considered likely since its chief executive officer Gerald Storch announced plans to step down in February.
In its SEC filing, the retailer stated it was pulling its initial public offering, which was first registered in May 2010, because of unfavorable market conditions and a recent management change.
Storch stepped down in February, although he will remain as chairman, and the company has begun a search for his replacement.
The decision to withdraw the IPO came at the same time that Toys ‘R’ Us released its fourth-quarter results, which were below the previous year.
Here are key results for the fourth quarter:
- Net sales were $5.8 billion for the fourth quarter, a decrease of $155 million compared to the prior year.
- Net earnings were $239 million, compared to $343 million in the fourth quarter of 2011, a decrease of 30 percent.
- Domestically, net sales were $3.5 billion, a decrease of 2.1 percent from 2011, driven by a comparable store net sales decline of 4.5 percent.
- The entertainment category, which includes electronics, video game hardware and software continued to be the weakest, with net sales declining 11.1 percent, while the juvenile and learning categories generated net sales growth of 2.6 percent and 1.4 percent respectively.
- Internationally, net sales were $2.3 billion, a decrease of 3.4 percent from the fourth quarter of 2011, driven by a comparable store net sales decline of 5.4 percent.
Here are the key results for the year:
- Net sales were $13.5 billion compared to $13.9 billion in the prior year, a decrease of $233 million primarily due to a decline in comparable store net sales of 3.5 percent domestically and and 5 percent internationally.
- This decrease was partially offset by an increase in net sales from new international locations, including stores acquired in China and Southeast Asia.
- Net earnings were $38 million, compared to $149 million in the prior year, a decline that mainly attributable to and income tax expense of $53 million compared to a $1 million benefit in the prior year.