Wayne, New Jersey-based retailer Toys ‘R’ Us reports that sales at its US stores declined by 5% during the nine-week holiday period ended January 3, 2015, but stateside gross margins are up.

According to TRU, its strategy to pursue more disciplined promotions and rational pricing led to improved gross margins, especially in its US segment. While the company did not post specific percentages, it states gross margin, as a percentage of net sales compared to prior year, increased by more than 200 basis points, resulting in an increase in gross margin dollars.

On the international front, same-store sales were up 1.2%, and gross margin was consistent with the year prior.

Antonio Urcelay, CEO of Toys ‘R’ Us, said the results reflect the execution of the company’s plan to rationalize promotions, slow sales decline and improve margins for fiscal 2014.

Year-to-date comparable store net sales decreased by 0.3%, for the period from February 2, 2014 to January 3, 2015. Its promotions and pricing strategy led to a 1.3% decrease year-to-date in domestic comparable store net sales, and a 1.3% increase internationally.

As a part of efforts to strengthen and transform its business, TRU continues to implement its transformation strategy. It also recently posted a narrower loss in the third quarter of 2014.