Toys `R' Stalled

Christmas was a bummer for Toys `R' Us, and August isn't much merrier. A few months after Toys execs warned of slowing profit growth, the retailer on Aug. 14 announced that earnings for the quarter ended July 29 fell 58%, to $15.8 million. The problems: Video games aren't selling like they used to, and no blockbuster toy has filled the void. Long-suffering investors seem unsurprised: The stock held ground around 263/8, still down from last year's highs above 40.

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