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'Force' is with Toys 'R' Us
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May 17, 1999: 9:40 a.m. ET
Toy retailer exceeds 1Q net forecast, sees 'Star Wars' boosting 2Q results
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NEW YORK (CNNfn) - Toys "R" Us Monday reported better-than-expected fiscal first-quarter earnings, and indicated that toys tied to the new "Star Wars" movie will bolster its results for the current second quarter.
The nation's largest specialty toy retailer said earnings for the three months ended May 1 were $17 million, or 7 cents a diluted share. While that was slightly below the $19 million, or 7 cents a share, reported in the prior year, it was above the 4 cents a share consensus of analysts surveyed by First Call.
Paramus, N.J.-based Toys "R" Us (TOY) said sales for the quarter rose 6 percent to $2.17 billion.
Helping the retailer was a 1 percent increase in sales at U.S. toy stores open a year or more, reversing the decline in comparable sales during the year-end holiday season.
"Star Wars" toys at a Toys "R" Us in New York
While upbeat about the first quarter, Toys "R" Us chief executive Robert Nakasone is even more positive about the current three-month period, thanks in large part to a "Force" sweeping movie theaters this week.
"We are experiencing strong second-quarter sales from the Star Wars merchandise, and anticipate continued sales improvements in categories such as plush, action figures, computer software and video games," Nakasone said.
The Toys "R" Us CEO also said the company is in the midst of remodeling 180 to 200 stores to its new C-3 format designed to make them more appealing and functional for shoppers. And the company has launched a push to strengthen its online offering, with a goal of capturing "clear leadership" of toy marketing on the Web by the end of the year.
Toys "R" Us shares fell 9/16 Friday to 22-1/4. 
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Toys "R" Us
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