Toys ‘R’ Us’ “transformational” year ends without earnings growth
Toys ‘R’ Us has delivered annual revenue of $48.2 million in it’s quasi-first year as a public company, though delivered a nil EBITDA based on operational expenses and the sale of discontinued businesses.
Formerly known as Funtastic, the business rebranded as Toys ‘R’ Us under the ticker TOY in April of 2021, after the former acquired Hobby Warehouse Group last November.
“The year has been transformational for the company,” the business said, “which is progressing toward its objective of securing a significant market share in the baby, toy and hobby retail sectors.”
In FY21 Toys ‘R’ Us relocated its warehousing operations to a temporary premises in Dandenong South, in an effort to satisfy its growing business. Moving forward, a purpose-built, state-of-the-art warehousing facility has been leased which will house both the business’ office and warehousing operations – as well as a standalone “experience centre”.
The disruption this caused, however, was not without impact. The business moved its operations in July, which put strain on its ability to fulfil its orders for the month and will mean many orders were invoiced and shipped the following month – putting those sales firmly in the next financial year.
However, average order value grew over the course of the year, hitting $94.11 for the first half and $122.95 for the second, representing a rise of 30.6 per cent half-on-half. Much was of this was attributed to repeat customers, who spent around 62 per cent more on average than new customers.
“[We’ve] worked diligently and cohesively to reduce disruptions during the recent warehouse relocation and commissioning process, and we are now focused on preparations for the busy November and December trading period,” said Toys ‘R’ Us CEO Dr Louis Mittoni.
Mittoni said that the business is cash self-sufficient, if it chooses the be, and will pursue top-line growth aspirations and market share goals over the next two years.