Toys R Us Stock Takes A Big Plunge

Like children who didn’t find that coveted gift under the Christmas tree, Wall Street threw a tantrum Monday over the lackluster holiday sales reported by Toys R Us Inc.

The company’s stock plunged in heavy trading after Toys R Us reported flat holiday sales at U.S. stores open at least a year, the most widely used measure of a retailer’s strength. The leading retailer of children’s products also said the disappointing performance would hurt 1996 earnings growth.

At one point, Toys R Us stock was down more than 18 percent, or by $5.56-1/4 a share, before recovering a little.

“That’s a pretty big hit,” said retail analyst Sally Wallick. “Clearly, Wall Street is reacting negatively to this news.”

Nationwide, the combination of a shortened holiday buying season, steep levels of credit-card debt and foul weather has been blamed by retailers for results that appear to have fallen short of expectations.