Dive Brief:

• Toys 'R' Us Inc. reported a Q4 $265 million profit, a healthy boost from its $210 million loss a year ago, thanks to its significant cost-cutting efforts.

• Q4 same-store sales were down 4.5%, and Q4 net sales were down 5% to $4.98 million. For its fiscal 2014, the Wayne, NJ-based retailer reported a net loss of $292 million, down from $1.04 billion last year.

• The retailer’s cost-cutting measures for the future include saving on rent by moving away from its iconic (and expensive) Times Square location in New York City. 

Dive Insight:

A year ago Toys 'R' Us was warning that there were too many toys and not enough babies to play with them, a situation that has been a significant factor in stalling its sales. But the retailer has also been battered by the same factors hurting electronics stores — competition from general retailers like Wal-Mart Stores and Amazon that are selling many of the same products to a price-conscious public. The retailer seems to have a good handle on trimming its excess expenses; next steps include beefing up its in-store experience and e-commerce strategies.