NEW YORK -- Shares of Toys 'R' Us Inc. fell 9.4 percent yesterday on worries that results for the holiday season may not meet prior expectations.
Analyst Robert Schweich of Wertheim Schroder & Co. said the toy retailer had sluggish sales in Germany and intense competition in Canada. He said he expects to cut his estimates of Toy 'R' Us profits when the company reports Christmas sales on Tuesday.
Mr. Schweich said he may trim his earnings forecast to $1.85 a share for the fiscal year ending in January from $1.95. In the fiscal year that ended Jan. 29, 1994, Toys 'R' Us earned $1.63 a share.
The Paramus, N.J., company declined to comment.
Toys 'R' Us stock is often volatile after the holiday season, before the company releases its sales results, said Merrill Lynch analyst Robert Roth. About 80 percent of the company's earnings generally come during the fourth quarter.
Toys 'R' Us stock fell $3 yesterday, to $30.125 a share, on the New York Stock Exchange. At one point, Toys 'R' Us stock made a new low for the year when it hit $29.625. The stock's previous 52-week low was $32.25 on May 6.
Stock of Petrie Stores Corp., a major stockholder in Toys 'R' Us, followed the toy retailer, dropping $2.125, or 9 percent, to $22.25.
The Secaucus, N.J.-based women's apparel retailer plans a shareholder vote Jan. 20 to determine whether to distribute its Toys 'R' Us stake to shareholders.