Hasbro's hit battling-top game Beyblade couldn't rescue Hasbro's first quarter from pallid demand for other games and girls toys and spending to launch The Hub TV network.
Net income fell 71 percent and missed Wall Street expectations. Stock in the maker of Scrabble and Nerf dropped $1.39 to close at $44.40 Thursday.
The first quarter is typically small for toy makers because it comes just after the crucial holiday season.
That was worsened this year by an unexpected dropoff in demand for toys in December. That led retailers to hold back orders in the following quarter as they worked to unload leftover holiday toys.
Hasbro CEO Brian Goldner said he still expects higher profit and revenue during 2011 as Hasbro launches new products like Sesame Street's Lets Rock Elmo and action figures tied into upcoming movies "Thor," "Transformers: Dark of the Moon" and "Captain America."
First-quarter results are "on track with our plan for the full year," he said.
Hasbro said its net income fell 71 percent to $17.2 million, or 12 cents per share, in the January-March period, down from $58.9 million, or 40 cents per share, in last year's quarter. Analysts expected earnings of 17 cents per share, according to FactSet.
Revenue was nearly flat at $672 million, but that was higher than the $659.1 million analysts expected.
Pawtucket, R.I.-based Hasbro said the net income decline reflects spending on product development, expansion in emerging markets and its television network The Hub, a joint venture with Discovery Networks that launched last October.
Hasbro's latest iteration of Beyblade, a game hailing from Japan that Hasbro introduced in 2002 in which spinning tops battle in arenas, was high in demand and in short supply globally, Goldner said. Increased production will likely not catch up to demand until the third quarter, he said.
Its popularity helped revenue from boys' toys rise 25 percent to $290.2 million.
Games and puzzle revenue fell 12 percent to $200.4 million. Girls' toys _ a segment that includes Furreal Friends and My Little Pony _ and preschool toys also declined.
International revenue rose 15 percent to $254.3 million, while revenue from the U.S. and Canada fell 8 percent to $391.2 million.
Along with Sesame Street toys and movie tie-ins, new products coming from Hasbro this year include its Lego competitor Kre-O, available in July, and two new interactive versions of Monopoly and Battleship, called Live, due in the fourth quarter.
Hasbro, like many manufacturers, raised prices in February to offset rising costs for materials like resin and higher gas prices.
Hasbro's chief rival Mattel Inc. reports first-quarter results on Friday.