Toys R Us has reported that, despite stronger sales, net income during the fourth quarter dropped more than 10%, which the retailer attributed to a rise in income taxes.

Net sales increased 2% to $6bn (£3.7bn), helped by new store locations including Toys R Us Express stores and comparable net sales growth of 1.8% in its domestic US market. International sales declined 3.1% on a like-for-like basis.

Net profit reached $330m (£202.8m), down from $387m (£237.8m) in the prior year period.