Toys "R" Us announces $7 million Q1 net loss

Paramus, N.J.-based Toys "R" Us Inc. has reported a net loss of $7 million in the first quarter, citing and accounting charge and weak U.S. sales. The retailer reported a first-quarter loss in 2002 of $4 million. The results reflected severance costs associated with the closing of 27 Toys "R" Us and 37 Kids "R" Us stores last year, as well as an accounting charge of $9 million for how the company reports vendor credits and allowances for cooperative advertising. Without the charges, the retailer would have reported net income of $2 million, the company says.