Toys R Us has dropped plans for an IPO, citing unfavourable market conditions and executive leadership transition as reasons.

The retailer also posted disappointing Q4 and 2012 full year results.

For the fourth quarter, the total company reported net sales of $5.8 billion, a decrease of $155 million compared to the prior year. Excluding the impact of foreign currency translation, net sales decreased $114m.

Meanwhile, for the full year, the total company reported net sales of $13.5 billion, compared to $13.9 billion in the prior year.

Domestically in Q4, net sales of $3.5 billion decreased 2.1 per cent versus the prior year, driven by a comparable store net sales decline of 4.5 per cent.