July 25 (Reuters) - Hasbro ( HAS ) posted a

smaller-than-expected drop in second-quarter sales on Thursday

as steady digital gaming demand offset a slump in toy sales,

while cost-control strategies helped the toymaker beat profit

expectations.

Shares of the company were up 6% in premarket trading as

Hasbro ( HAS ) saw margins grow in the quarter to 21.3% compared with a

15.6% decline in margin a year earlier.

The Nerf toy gun maker's turnaround strategy to limit

expenses and maintain a tight inventory amid an industrywide

slowdown in toy demand has helped boost its performance.

The company's quarterly revenue dropped 18% to $995.3

million, smaller than a 22.02% drop estimated by analysts,

according to LSEG data.

On an adjusted basis, Hasbro ( HAS ) earned $1.22 per share in the

second quarter, compared with estimates of 78 cents.

Hasbro ( HAS ) now expects full-year revenue from its consumer

products segment to be down 7% to 11%, compared with its

February forecast of a 7% to 12% decline.

On Tuesday, Barbie maker Mattel ( MAT ) topped Wall Street

estimates for second-quarter profit, aided by a tight control on

costs even as it posted a surprise drop in sales.

(Reporting by Savyata Mishra in Bengaluru; Editing by Shounak

Dasgupta and Shinjini Ganguli)