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Toys R Us pre-tax profits rocket despite full year dip in sales

Toys R Us pre-tax profits rocket despite full year dip in sales

Toys R Us’ pre-tax profits have rocketed in its latest full year results, despite a dip in sales perpetuated by the ‘competitive market environment.’

The toy retail giant unveiled an 82 per cent jump in pre-tax profits to £42.7 million in the 12 months to January 28th.

This was despite a fall of four per cent in sales in the period, totalling £418 million.

The retailer has not specified what has driven the spike in profits, hinting only at a competitive market environment as the reason for its actual sales dip. However, the retailer’s accounts show that it has seen a reduction in administrative costs of 44 per cent on last year.

Its employee numbers remained the same, but it significantly reduced the amount of money paid to company directors. In fact, renumeration totalled £429,000 in the period, compared with more than £2m the year before.

The retailer has said that, following last year’s Brexit vote, ‘there is considerable uncertainty in regards to interest rates, currency values, consumer disposable income and consumer spending.’

Toys R Us does intend to ‘adapt as necessary,’ to Brexit, but has no specific plans in place to mitigate the impact, ‘as the full effects of the vote will not be known for some time.”

De: ToyNews Feed - http://www.toynews-online.biz/news/read/toys-r-us-pre-tax-profits-rocket-despite-full-year-dip-in-sales/049101
Fecha: August 11, 2017 at 01:16AM

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