Overall sales were $2.7 million, compared to $2.719 million in 2010. Learning sales, however were up by 3.8 per cent, while core toy revenues were up by 2.7 per cent.
The fall in entertainment sales showed an overall softness across the video game industry. Excluding the entertainment category, net sales increased by 0.9 per cent.
Net loss after tax $93 million, which was consistent with the same period in 2010
International sales slipped by 3.9 per cent, while the US fell by 2.2 per cent and internet sales 'continued to be strong'.
Jerry Storch, chairman and CEO, Toys R Us, commented: "During the third quarter, we prepared for the upcoming holiday season and took some important steps to position the company for long-term growth.
"Recently, we acquired the majority stake in our operations in China and Southeast Asia, presenting what we believe will be a significant opportunity for the company. And, just two weeks ago, we opened our first store in Poland. International growth in new and emerging markets remains a key part of our overall business strategy.
"At the same time, among our most important strategic priorities in the US is creating new ways for customers to shop seamlessly between our online and bricks and mortar businesses, wherever, whenever, and however they choose.
"Important to increasing the depth of our omnichannel services, was the recent opening of our state-of-the-art ecommerce fulfillment center in Nevada, which provides increased capacity to meet the needs of our customers who shop online."