UPDATE 3-Hasbro profit hurt by weak demand for boys' toys
July 22 (Reuters) - Hasbro Inc, home to brands such as G.I. Joe, Nerf and Mr. Potato Head, posted a lower-than-expected quarterly profit Monday on weak demand for its toys for boys, becoming the third toymaker to fall short of Wall Street expectations in the second quarter.
In the quarter, usually a weak period for toymakers, revenue in Hasbro's boys' toy business fell 35 percent to $253.7 million, overshadowing sales growth in the girls, games, and preschool units.
Unlike the second quarter of 2012, Hasbro had fewer movie franchises supporting its brands, such as Marvel and Beyblade, this year.
Last week, larger rival Mattel Inc posted a much weaker-than-expected profit on sluggish Barbie doll sales, and smaller toymaker Jakks Pacific Inc slashed its full-year forecast, saying several retailers in the United States and Europe had cut orders for its key products.
Hasbro said second-quarter net profit fell to $36.5 million, or 28 cents a share, from $43.4 million, or 33 cents a share, a year earlier.
Excluding a pension charge, it earned 29 cents a share, missing analysts' average estimate of 34 cents, according to Thomson Reuters I/B/E/S.
Hasbro, which counts retailers Wal-Mart Stores Inc, Target Corp and Toys R Us Inc among its customers, said sales fell 6 percent to $766.3 million. Analysts had expected $794.7 million.
The No. 2 U.S. toymaker also said it has expanded its partnership with Walt Disney Co, giving it the rights to make toys and games for Marvel characters such as Spider-Man, the Avengers and Iron Man through 2020. Hasbro's rights for the Star Wars franchise, which Disney bought recently, also runs through 2020.
Hasbro shares, which have climbed more than 26 percent this year, were unchanged in premarket trading Monday morning.