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Toys”R”Us Reports a ‘Transformational’ FY21
Toys”R”Us are projecting an upward trajectory as its FY21 results are released, following a ‘transformational’ year for the company.
The retailer made a licensing deal with Hobby Warehouse in 20129 after filing for voluntary administration in 2018. Then, in 2020 Funtastic acquired the business – and by extension Toys”R”Us, and issuing a further 250 million shares to bring the business back to profitability
Two years later, the retailer has recorded a Consolidated Proforma Annual Revenue of $48.2 million. Furthermore, its Consolidated Proforma Annual Profits have reached $11.1 million.
The retailer recorded a cash balance of $17.2 million and net assets of $55.7 million. The AOV for the retailer for H2 FY21 was approximately $122.95, compared to $94.11 in H1. Furthermore, repeat customers for Toys’R’Us increase to 16.8 percent for FY21 H2, up from 13.2 percent in the first half of FY21.
“The Toys“R”Us teams have worked diligently and cohesively to reduce disruptions during the recent warehouse relocation and commissioning process, and are now focussed on preparations for the busy November and December trading period,” shared the CEO and MD of Toys”R”Us, Dr Louis Mittoni. “Whilst the Company is cash self-sufficient should we choose to be, we plan to pursue top-line growth aspirations and market share goals over the next year or two wherever suitable avenues arise.”
Despite the relocation of warehouses between July and August this year, Toys”R”Us experienced an increase in orders of 14.8 percent quarter-on-quarter. Toys”R”Us and Hobby Warehouse Group (HWG) moved into a temporary warehouse premise in Dandenong South, which enabled the company to deploy WMS and Autonomous Mobile Robots to increase the capacity and efficiency of orders. In July this year, the company secured a lease for a purpose-built DC in Clayton.
“Much of our inventory has been planned sufficiently in advance to help ensure adequate stock levels of in-demand items are available for end of year peak trading events and promotions,” explained Lian Yu, the COO of Toys”R”Us ANZ. “Some categories, such as selected outdoor play products, were planned for as early as October 2020, shipped prior to any freight disruptions and have been received into our warehouses in recent weeks.”
The retailer’s infant-leg of the business, Babies”R”Us soft-launched in August this year, with a core focus on ‘ease of shopping’. In conjunction with the soft launch, the retailer unveiled a new website platform, with ‘intelligent’ product categorisation and ‘expert’ understanding for parent’s and carer’s needs. This expansion of the business will continue into FY22, with an expected marketing and advertising campaign.
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