A Comprehensive Financial Analysis

A Comprehensive Financial Analysis

Of

TOYS R US

TABLE OF CONTENTS

Company Overview ....................................................... 4

Key Facts........................................................................ 4

Business Description.................................................... 5

History ............................................................................ 6

Key Employees .............................................................. 7

Major Products And Services..................................... 12

Products And Services Analysis................................ 13

SWOT Analysis ............................................................ 14

Top Competitors .......................................................... 18

Company View ............................................................. 19

Locations and Subsidiaries........................................ 24

HISTORY

Toys "R" Us was established in 1948 as a baby furniture store in Washington DC, by

Charles Lazarus at the young age of 25 . Mr. Lazarus began a business totally dedicated to kids and their needs just in time for the post-war baby boom era. The store started off by selling baby toys first, and then toys for older children, as it responded to customer demand. In 1957, Lazarus opened the first toy supermarket, which combined specialty retailing and off-price positioning. In May 1999, the company formed a new division, Toysrus.com. The following year, Toysrus.com teamed up with Amazon.com to form a co-branded online toy store.

ANALYSIS OF TOY R US' MAJOR INDUSTRY

Toys "R" Us specializes in the provision of toys, apparel and baby needs to children

and their families. The Toys "R" Us family, which includes Toys "R" Us, Babies "R" Us,

Imaginarium and Toysrus.com. It has operations in 25 countries, mainly the US,

Japan, Canada, and Europe, and sells toys, games, bicycles, sporting goods, VHS

video tapes, electronic and video games, small pools, books, infant and juvenile

furniture and similar items and electronics, as well as educational and entertainment

computer software for children.

DESCRIPTION OF PRODUCT AND SERVICE LINE

Toys R Us, Inc is engaged in the operation of retail stores consisting of U.S. locations comprised of toy stores under the name Toys R Us, children's clothing stores under the name Kids R Us, infant-toddler stores under the name Babies R Us, and educational specialty stores under the name Imaginarium. Internationally, the company operates toy stores under the name Toys R Us. It also sells merchandise through its Internet sites and through mail order catalogues. Its products include:

Action Figures

Activities & Learning

Arts & Crafts

Baby Toys

Bikes

Scooters

Ride-ons

Skateboards

Skates

Blocks

Building Sets

Models

Dolls

Furniture

Games & Puzzles

Pretend Play & Dress-Up

Sports & Outdoor Play

Stuffed Animals & Toys

Vehicles & Die-Cast

Video Game

Toys "R" Us International operates or franchises toy stores in more than 25 countries

outside the US. These stores generally conform to traditional prototypical designs

similar to those used by Toys "R" Us, USA. It also employs computerized inventory

systems similar to those utilized by Toys "R" Us, USA.

SENIOR MANAGEMENT TEAM

John H. Eyler, Jr

Chairman and Chief Executive Officer

John Eyler joined Toys"R"Us, Inc. as President and Chief Executive Officer in January 2000. He was named Chairman in June 2001. Prior to joining Toys"R"Us, Inc., Mr. Eyler was Chairman and Chief Executive Officer of FAO Schwarz in New York. Mr. Eyler is Chairman of the Board of Directors of Toys"R"Us, Inc.

Ray Arthur Chief Financial Officer Toys"R"Us, Inc.

Ray Arthur was appointed Chief Financial Officer of Toys"R"Us, Inc. in 2004.

Mr. Arthur is an experienced finance and operating executive. As President of Toysrus.com, he was responsible for all aspects of the business and for driving Toysrus.com's diversification and expansion plans worldwide.

Francesca L. Brockett Executive Vice President Chief Strategy and Corporate Structure Officer

Francesca L. Brockett, is Executive Vice President, Strategic Planning and Business Development for Toys"R"Us, Inc. In this position she is responsible for identifying and championing future