But the company anticipates full-year profits ahead of four major movie releases in 2012.
Hasbro made a net loss of $2.5 million in the quarter to April 1st 2011, versus a profit of $17.1 million in Q1 last year.
In its International segment, Hasbro grew its sales by 14 per cent, but saw its operating losses widen to $5.1 million from $1.7 million in the first quarter of 2011.
In the US and Canada - where revenues decreased 16 per cent - Hasbro turned a profit of $14.4 million, a like-for-like drop of 65 per cent, down from $41 million.
Category wise, Hasbro saw growth in its boys and pre-school categories, going up four and two per cent, respectively, while games slipped nine per cent and the girls category went down 18 per cent.
"Our first quarter 2012 results are consistent with the plan we previously communicated for the year," said Brian Goldner, president and CEO. "We continue to experience good momentum in our international business and positive point-of-sale trends in the US and international markets."
He continued: "For the full year 2012, we continue to believe, absent the impact of foreign exchange, we will again grow revenues and earnings per share. Our expectation remains that a higher percentage of full year revenues will be in the second half of the year versus past years. This shift in the timing of our business has a similar impact on profitability.
"We have launched several new initiatives for 2012 which are generating good early results. We are looking forward to the four major motion pictures coming to global audiences in the next few months as well as the launch of our all important fall and holiday initiatives in the second half of the year."