Toys R Us reported a net loss of $60m (£39m) for the quarter ended April 28 compared with a loss of $67m (£43m) a year ago, despite a 0.9% drop in sales, thanks to margin improvements and cost controls. Net sales totalled $2.6bn (£1.7bn), hit by a decline of 5% at the international division.

The group said its learning and toy categories remained strong, delivering revenue growth of 6.7% and 4.7%, but entertainment sales were down 14%, reflecting ongoing weakness in the video game industry and increased competition from supermarkets and online rivals.

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