Third quarter results have revealed the world's largest toy shop, Toys R Us, has been dragged $65m into the red by its e-tail operations only months after teaming up with Amazon on a co-branded website.However, the company's shares took a sharp skip up to $18.25 - an eleven per cent increase. The third quarter figures did not take into account the $118m cost of the joint website and the disposal of two warehouses associated with it. The company also established a new website 'babiesrus.com' to go with its new Babies R Us chain. John Eyler, CEO of Toys R Us, said the company was well positioned for the holiday season and expects to beat analysts' forecasts for the season and for the year. Toys R Us third quarter sales were $2.2bn, down on the $2.5bn for the same period last year.