Leaner, MeanerToys R Us has been in turnaround mode for some time, since it lost its place as the No. 1 toyseller to Wal-Mart more than 2 1/2 years ago. The company has been pressured by the retail juggernaut's lower prices and massive reach -- deficiencies that some investors say the company is still not remedying. Toys R Us did make some progress in its latest quarter. On Monday, Toys R Us said it lost 8 cents a share in the second quarter -- analysts had been expecting an 11-cent loss, according to Thomson Financial/First Call. Management said it is comfortable with the current consensus earnings estimate of $1.15 for the full year. Notably, the company reported leaner inventories, and on a conference call CEO John Eyler said the chain is in good position to boost sales in the second half of the year. This accounted for much of Monday's bullishness. Gerrick Johnson, who covers the company for its underwriter Gerard Klauer Mattison, said Toys R Us has "possibly set the stage for market share gains when the economy improves." Johnson rates the stock buy.
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