Oct 24 (Reuters) -

Hasbro ( HAS ) on Thursday posted a steeper-than-expected

drop in sales for the third quarter as consumers tightened

spending on toys, but the company's stringent cost controls

boosted margins.

Toymakers such as Mattel ( MAT ) and Hasbro ( HAS ) have focused on

cost-savings this year to weather a slump in demand for toys.

Play-Doh parent Hasbro ( HAS ) posted an adjusted margin of 25.7%

for the quarter, up from last year's 22.8%.

Revenue fell for the ninth straight quarter to $1.28

billion, compared with estimates for a 13.8% drop to $1.30

billion, according to data compiled by LSEG.

It expects full-year revenue from its consumer products

segment to fall between 12% and 14%, compared with its prior

forecast of a 7% to 11% decline.

Rival Mattel ( MAT ) beat expectations for quarterly profit on

Wednesday, even as it lowered its annual sales forecast heading

into the crucial holiday shopping season.

(Reporting by Savyata Mishra in Bengaluru; Editing by Devika

Syamnath)