...Mid-$600 Million EBITDA Expected in 2017: EBITDA (Fitch Ratings calculated) improved to $753 million in 2015 from $597 million in 2014 given modestly positive same- store sales of 0.9% and cost reduction. However, Fitch expects EBITDA to be around $700 million in 2016 and $650 million in 2017 given annual consolidated same-store sales declines of 1.5%¡2.0% and some gross margin pressure. Fitch believes Toys `R' Us, Inc. (Toys or HoldCo) needs to invest further to improve its price perception and build out its omnichannel infrastructure. Long-Term Headwinds: Long term, we believe Toys faces both competitive and secular headwinds, and the company will continue to be a share donor. Toys has faced a multidecade onslaught of competition from discounters such as Wal-Mart Stores, Inc., and more recently, online-only players such as Amazon.com, Inc., leading to market share losses. Refinancing Largely Complete: Toys issued $583 million of senior secured notes due August 2021 at a new entity, TRU...
