Toys R Us Inc

Toys R Us Inc. said it plans to buy back as much as $1 billion of stock and take its Japanese unit public in the first half of this fiscal year. The steps are the latest by John Eyler, who took over as chief executive in January, to reinvigorate the retailer's sagging shares, which have fallen by two-thirds in the last three years. Paramus, N.J.-based Toys R Us will hold less than a 50% stake in Toys R Us Japan Ltd. after the initial and subsequent stock sales.

Toys R Us Inc.'s first-quarter loss shrank to $4 million as the second-largest U.S. toy retailer cut costs and sold more exclusive products such as Animal Alley plush toys. The net loss narrowed to 2 cents a share from $18 million, or 9 cents, in the year-earlier period, the company said. Analysts had expected a 5-cent loss. Sales rose 1.6% to $2.1 billion. Per-share earnings this year will meet the $1.14 average estimate of analysts, the company said. Shares of Toys R Us fell 53 cents to $17.

Amazon.com Inc., responding to a lawsuit by Toys R Us Inc., is seeking to dissolve the companies' partnership, citing a "chronic failure" by the toy seller to adhere to their contract. In a countersuit filed in New Jersey state court, Seattle-based Amazon.com suggested it should be awarded at least $750 million for lost shipping revenue and other costs. A spokeswoman for Wayne, N.J.-based Toys R Us said the suit had no merit and the companies were in mediation.

Toys R Us Inc. plans to convert one of its two Manhattan stores into a Babies R Us, gaining a prime location for its fast-growing division that sells baby furniture, car seats, apparel and accessories. The company's flagship store in Times Square will not be affected, a spokeswoman said. The plan comes a month after the company said it expected to separate its Toys R Us business from the Babies R Us operations in the first half of next year. The Wayne, N.J.

Toys R Us Inc.'s third-quarter loss narrowed to $25 million after the No. 2 U.S. toy seller shut its Kids R Us chain. Sales fell less than analysts expected as the retailer lowered prices to match Wal-Mart Stores Inc. The net loss narrowed to 12 cents a share from $46 million, or 22 cents, a year earlier, the Wayne, N.J.-based company said. Sales dropped 1.4% to $2.21 billion. Sales at U.S. toy stores open at least a year declined 1.7%. Shares of Toys R Us rose 42 cents to $19.78 on the NYSE.

Toys R Us Inc. will pay bonuses to six top executives if they stay with the company through its exit from the toy and baby-products businesses. The bonuses will be equal to one or two times the officer's base salary at the time of the transaction, the Wayne, N.J.-based company said in a Securities and Exchange Commission filing. Toys R Us Chief Executive John Eyler Jr. has said the retailer may sell its toy business and spin off the Babies R Us chain.

Toys R Us Inc. said U.S. division President Gregory Staley resigned from the second-largest U.S. toy retailer for personal reasons. Staley, 55, joined the company in 1989, Toys R Us said. He helped redesign the Paramus, N.J.-based toy chain's stores and was president of the international division from 1995 to 2000. The U.S. toy store division will report directly to Chief Executive John Eyler until Staley's successor is named, the retailer said. A search is underway.

Toys R Us Inc. took another step to restructure its business with the purchase of educational toy chain Imaginarium, a move that will greatly expand its offerings of learning and specialty toys. Privately held Imaginarium will keep its name on its 41 stores, which are located in 13 states, while an area of Toys R Us' stores will be branded Imaginarium. Terms of the deal were not disclosed. Paramus, N.J.

Hasbro Inc., maker of Pokemon Power Bouncer Balls, and the Toys R Us Inc. toy-store chain have been sued over the choking death of an autistic child who swallowed a Pokemon ball. Kevin Brazier, the father of 7-year-old Robert Brazier, who died in January, said the Pokemon rubber ball--a clear sphere with a colorful Pokemon character inside--is too small for young children and encourages them to try to open it with their mouths.