Toys R Us Puts $18.7 Million in Its Piggy Bank

Toys R Us reported Monday that its earnings rose 1.6% in its fiscal first quarter on strong sales of dolls, juvenile furniture and video game hardware.

The nation’s largest toy retailer had net income of $18.7 million, or 7 cents a share, exceeding by a penny the average estimate of a number of Wall Street analysts. A year earlier, it earned $18.4 million, or 7 cents a share.

“The trends are very positive,” said Annie Erner, an analyst with UBS Securities. “There is new strength in the action figures area, which had tough sales comparisons last year with the popularity of the Power Rangers.”

Chief Executive Michael Goldstein said the Paramus, N.J.-based company’s earnings were hurt by interest payments on short-term loans used to fund expansion and from a shift in sales to lower-margin items such as video hardware.

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Columbus, Ohio-based Limited’s first-quarter profit rose 39% on strong sales in the Victoria’s Secret and Abercrombie & Fitch divisions.

The specialty retailer, which operates 4,016 stores nationwide, said net income was $28.2 million, or 9 cents a share, in the quarter ended May 4, beating the average estimate of 7 cents a share by analysts.

The company’s pro forma net income was $20.3 million, or 7 cents a share, a year earlier. Last year’s results include pro forma adjustments to reflect the impact of the company’s initial public offering of a 17% interest in Intimate Brands, which owns Victoria’s Secret.

Limited operates numerous apparel chains, including Limited, Express, Lerner New York, Lane Bryant, Henri Bendel, Structure, Limited Too and Galyan’s. The company also owns 83% of Intimate Brands, which operates 1,336 specialty stores, including Victoria’s Secret, Bath & Body Works, Cacique and Penhaligon’s.

At a Glance:

AutoZone reported a 16% increase in fiscal third-quarter earnings and said Kohlberg Kravis Roberts will sell more than half its 28.8% stake in the company in a public offering. The nation’s largest auto parts retailer said its net income rose to $37.6 million, or 25 cents a share, from $32.4 million, or 22 cents, in the year-earlier period.

Ross Stores reported first-quarter earnings of $14 million, or 54 cents a share, compared with $3.8 million, or 16 cents, for the year-ago period.

Orchard Supply Hardware reported first-quarter net income of $3.5 million, or 44 cents a share, up from $2.9 million, or 38 cents, for the year-ago quarter.