Hasbro, much like its bigger rival Mattel Inc
But Hasbro, which makes Transformers action figures, Tonka trucks and Parker Brothers board games, said things may be getting better.
Based on the strength of our product line, we believe the two most recent quarters will prove to have been the most challenging for Hasbro in this economic cycle, said David Hargreaves, Hasbro's Chief Operating and Financial Officer, in a statement.
Net profit was $19.7 million, or 14 cents per share, in the first quarter, ended on March 29, down from $37.5 million, or 25 cents per share, a year earlier.
The results matched analysts average estimate, according to Reuters Estimates.
Sales fell 11.7 percent to $621.3 million. Excluding the impact of the stronger U.S. dollar, which reduces the value of international sales, sales fell 6 percent.
Aside from the stronger dollar, Hasbro blamed the reduction of retailers' inventories and this year's later Easter holiday, which pushed holiday-related sales into the second quarter.
Hasbro recently extended its royalty deal with media company Marvel Entertainment Inc
The company expects the movie releases of Transformers: Revenge of the Fallen, G.I. Joe: Rise of the Cobra and X-Men Origins: Wolverine to drive business in coming quarters.
(Reporting by Martinne Geller; Editing by Derek Caney)