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Toys 'R' Us to miss 3Q mark
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October 9, 2001: 10:19 a.m. ET
Toy retailer cites increased costs and lost sales due to Sept. 11 attack.
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NEW YORK (CNNmoney) - Toy retailer Toys "R" Us Inc. warned Tuesday it will post a fiscal third-quarter loss almost twice as large as current forecasts, citing costs and lost sales related to the Sept. 11 terrorist attack.
The company, the second-largest toy seller after Wal-Mart Stores Inc., said it expects to lose 22 cents a share in the period ending Nov. 3. Analysts surveyed by First Call expected a loss of 13 cents a share, which was revised from a forecast of a 10 cent a share loss before the attack.
Shares of Toys "R" Us (TOY: down $0.14 to $18.16, Research, Estimates) lost ground early Tuesday following the pre-market warning.
The company said the lost sales in the immediate wake of the attack accounted for about 4 cents of the additional loss. One-time costs, such as dropping previously produced advertising and promotional initiatives, reshooting commercials and making charitable contributions, amounted to 5 cents of additional losses. It said a weaker economic environment overall is responsible for the remainder of the widened loss.
Even with the latest problems, the troubled retailer should narrow its loss from the 32 cents a share it lost in the year-earlier period. The company lost money in the first two quarters of the current fiscal year, but even with the new loss estimate it is on track to post a profit for the fiscal year.
The Paramus, N.J.-based company said full-year earnings should be near the low end of its current range of forecasts. First Call's consensus EPS forecast for the year is $1.49, with estimates ranging from $1.40 to $1.53.
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The company said construction of a new flagship store in Times Square in New York was delayed due to the attack, but it still expects to open by Nov. 17, before the traditional start of the pre-holiday shopping season the day after Thanksgiving. 
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