FORTUNE — Toys ‘R’ Us is still selling plenty of Elmo dolls, but it isn’t planning to sell shares anytime soon.

The New Jersey-based retailer today withdrew registration for an $800 million IPO, which it had originally filed back in May 2010. A press release cites “market conditions” — an odd choice, given that the Dow is at a record high. It also probably didn’t help that CEO Gerry Storch is on his way out the door, and no successor has been picked.

But the big problem for Toys “R” Us was weakening financial performance. Net sales for fiscal 2012 (ending Feb. 2, 2013) were $13.5 billion, down 2.88% from the prior year. This included a 3.5% decline in domestic comparable store net sales and a 5% fall-off among international comparable store net sales — buoyed  only slightly by the opening of new international locations (including in China). Also worth noting that the fiscal 2012 reporting period actually included one more week than did fiscal 2011, which resulted in around $152 million of extra revenue.

Earnings fell from $149 million to $38 million, largely due to tax expenses. Interest payments rose slightly from $442 million to $480 million, while adjusted EBITDA was off by $39 million.

In short, not the type of growth profile that gets rewarded by the public markets in an IPO.

Underwriters on the proposed offering included Goldman Sachs GS , J.P. Morgan JPM , BoA Merrill Lynch BAC and Credit Suisse CS .

Toys ‘R’ Us was taken private in 2006 by Bain Capital, Kohlberg Kravis Roberts & Co. KKR and Vornado Realty. A Toys “R” Us spokeswoman declined to comment, referring us instead to Bain or KKR. Messages have been left with both.

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