Net loss narrowed by $11 million compared to the prior year period. In addition, the company recently refinanced all of its 2017 debt and a significant portion of its 2018 maturities with the successful completion of the TRU Taj notes exchange in August and the Propco II CMBS and mezzanine financings in November, which will reduce annual interest payments by $12 million based on LIBOR rates as of October 29, 2016.
Consolidated net sales were $2,278 million, a decrease of $53 million compared to the prior year period. Excluding a $22 million favorable impact from foreign currency translation, net sales declined by $75 million.
The decrease was mainly attributable to a decline in Consolidated same store sales and Domestic store closures, which included our Times Square flagship store.
Consolidated same store sales decreased by 2.1%. Domestic declined by 1.9% primarily from decreases in the entertainment and baby categories, partially offset by improvements in the learning and core toy categories. International declined by 2.5%, driven by our Asia Pacific and Europe markets, partially offset by continued growth in Canada. Consolidated e-commerce sales were up 9%.
Gross margin dollars were $821 million, a decline of $11 million compared to the prior year period. Excluding a $7 million favorable impact from foreign currency translation, gross margin dollars decreased by $18 million.
Gross margin rate was 36.0%, an increase of 30 basis points. Domestic gross margin rate remained consistent with the prior year period, while International gross margin rate increased by 80 basis points led by margin rate improvements in the core toy category and sales mix away from lower margin entertainment products.
SG&A was $835 million, an increase of $8 million compared to the prior year period. Excluding a $6 million unfavorable impact from foreign currency translation, SG&A increased by $2 million, largely due to an increase in advertising expenses related primarily to the early release of our "Big Book" holiday catalog, partially offset by a decline in store operating costs from the closure of our Times Square flagship store.
Operating losses were $31 million, a decline of $23 million compared to the prior year period, driven mainly by a gain on the sale of the FAO Schwarz brand of $45 million.
Domestic segment operating losses increased by $19 million, mainly as a result of reduced gross margin dollars. International segment operating earnings were flat.
Adjusted EBITDA1 for the quarter decreased by $13 million to $21 million, compared to $34 million in the prior year period.
The above results produced a Net loss of $156 million, which was $11 million lower than the prior year period of $167 million.
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