Net sales increased nine per cent to $128.3m compared to $118m in the third quarter of 2009.
Adjusted net earnings were $19.8m compared to $14.4m in the third quarter of 2009.
Net income was $16.3m, compared with $72m a year earlier.
Third quarter 2010 results are adjusted for a $3.4 million unrealised foreign exchange loss on debentures. The results include adjustments for Specified items including $72m from a favourable litigation settlement, as well as a $4.2m unrealised foreign exchange loss on debentures.
Net sales of toy lines increased 18 per cent compared to the third quarter of 2009, led by Halo and Dragons Universe in the boys category and sustained growth in the pre-school category.
US net sales were higher, reflecting strong toy shipments, offsetting lower sales in stationery and activities.
International sales were up 18 per cent led by growth in key European markets.
''Our sales momentum is positive for the peak toy selling season and into next year with all of our key product initiatives performing well at retail and a strong line-up of new products set for launch in spring and fall of next year,'' said Marc Bertrand, President and CEO. ''We are on track with our plan and continue to strengthen our product portfolio for the years to come.''