Toys R Us lost an even $1 billion in its fiscal 2013, according to its Q4 and full year 2013 results (for the period ended February 1), released Wednesday. That compares to a $38 million profit in the fiscal year that ended in early 2013.
The company noted declines in sales in its entertainment (including electronics and video games), learning, and juvenile categories.
The holiday quarter, for which the company had already reported declining sales, was not profitable; the company reported a loss of $210 million, vs. a profit of $239 million in the holiday quarter last year. A big chunk of that loss came from clearing inventory, as the company cut prices in the quarter to move out stock and took a $51 million writedown on inventory that remained. The company also took a $378 million charge for goodwill impairment.
Toys R Us has been troubled for years, and the value of its debt has been declining amid concerns that it will not be able to refinance when its bonds come due. The company has already begun cutting headquarters staff .
The company did successfully refinance its senior secured revolving credit facility last week at lower rates, which takes some of the pressure off.