MGA Entertainment Chief Executive Isaac Larian says Bratz dolls – which are sometimes outfitted in belly shirts, short skirts and fishnet stockings — don’t promote sex and suspects their racy reputation may be the result of a smear campaign by Mattel Inc., which makes Barbie dolls.

“This whole ’sexy’ thing is pushed on Bratz … I think it was generated by our friends at Mattel,” Larian told Reuters in an interview. “They couldn’t beat us in the market, so my guess is that they have started a negative campaign.”

Larian also lauded MGA’s policy of not signing celebrities to endorse Bratz dolls. He said the company once refused a request by beleaguered actress Lindsay Lohan to endorse Bratz.

In 2005, Mattel released the Lindsay Lohan “My Scene Barbie.”

“I don’t think it’s good to attach any celebrity to any lifestyle brand that appeals to girls or boys … You never know with these celebrities what they will do next.”

Privately-held MGA says it has sold more than 150 million of the dolls, and Larian said he sees “Bratz: The Movie” boosting demand, sending yearly sales up from anywhere between 50 and 100 percent.

Representatives from Mattel and Lohan didn’t immediately respond to requests for comment.

Anticipation of strong sales from Hollywood blockbusters “Transformers” and “Spider-Man 3″ helped Hasbro’s shares surge nearly 75 percent in the last year, but the question of what’s next has  caused some investors to pull back.

The stock fell as much as 5 percent on Monday despite Hasbro posting a better-than-expected quarterly profit on higher sales, which were boosted by strong demand for its Transformers and Spider-Man 3 toys.

“My sense is that people are looking at the strength this year as a good thing, but are concerned that Hasbro is going to be challenged to drive growth next year,” Arcadia Investment Corp. analyst John Taylor told Reuters.  “The challenge with an entertainment business is that it probably has to be replaced next year. They’re not long-lived revenues,” he added.

Webush Morgan Securities analyst Sean McGowan sounded a similar theme. In a research note, he wrote that “investors considering the prospect of a negative earnings comparison in early 2008 may bid the stock down.”

Looking ahead, Hasbro will seek to drive growth over the second half of the year with new toy lines including board game version of the Fox TV show “Are you smarter than a 5th grader?,” a Littlest Pet Shop game, talking parrot Squawkers McCaw, the Power Tour Guitar and Peyton Manning Football.

Author J.K. Rowling has said “Harry Potter and the Deathly Hallows” — the seventh installment of the Potter book – will be the end of the series, but some fans and booksellers simply can’t let go.  In fact,  many are lining up to pressure Rowling into keeping the series alive. 

On Friday book retailer Books-A-Million Inc.  joined a petition organized by Waterstone – the largest specialty bookstore in the U.K. – to “Save Harry.” The booksellers are aiming to to gather 1 million signatures of fans who aren’t ready to see the adventures of the bespectabled boy wizard come to an end.

Books-A-Million said it will steer its online customers to a petition on its website and will collect signatures at its 208 stores throughout the United States.

And if the results of a Waterstone survey prove to be accurate,  Books-A-Million won’t have much trouble getting people to sign up.

According to the survey, 85 percent of readers between ages 8 and 11  — 66 percent overall – want Rowling to write more Potter books.  And more than 60 percent hope Potter isn’t killed off in his latest battle against malevolent forces.

Since bursting onto the scene in 1997, the Harry Potter series has sold more than 325 million books worldwide, spawning five feature films.

Teen retailers posted better same-store sales numbers this week, but gas prices and a cool housing market spell less-than-spectacular growth for the sector, analysts told Reuters.  

“May should dispel any doubts people had that the consumer is not spending as robustly as they did last year,” Brean Murray Carret & Co. analyst Eric Beder said in an interview.

“All these negatives hitting the consumer at once, I think, has really made them pull back … Even at the teen sector, people are getting a little worried.

Last week, the U.S. Office of Federal Housing Enterprise Oversight said the average rise in U.S. home prices in the first quarter was at it lowest point in a decade. And according to the Federal Energy Information Administration’s most recent nationwide survey, the average price for regular gasoline has climbed to $3.16 a gallon, up 27 cents from a year ago.

Ken Perkins, president of Retail Metrics, said consumers have also been bogged down by a fair amount of debt. He also said shoppers will be less likely to splurge if interest rates rise.

A stellar jobs market helped May sales and should keep the market from bottoming out, Perkins said.

“There are some headwinds, but as long as the job market holds up, comp gains should be modest,” Perkins said.

A web-slinging toy by Hasbro Inc. and a racing timer featuring a digital LCD screen by Mattel Inc. should be two of the hottest selling toys this summer, according to the Spring 2007 Hot Dozen list by Toy Wishes Magazine.

Hasbro’s Deluxe Spinning Web Blaster lets children sling silly-string webs with a flick of the wrist just like Spiderman. The device looks like it was cut from Spiderman’s costume and straps onto the wrist.

Mattel’s Hot Wheels Racing Timer is meant to time foot or bike races and applauds competitors when they cross the finish line. The racers hear an announcer declare the winner while a digital LCD screen displays the time and speed for two racers.

Mattel’s Rainbow Adventure Elina Doll and DVD game, which are part of the company’s plan to revitalize its sagging Barbie line also made the list. The doll functions as an interactive controller for the game. 

The most expensive item to make the list is the $399.99 Banzai Double Drop Raceway by ToyQuest, an inflatable backyard waterslide featuring a waterfall.

Here’s the Spring 2007 Hot Dozen List in alpabetical order:

1. Baby Alive Sip ‘N Slurp by Hasbro;

2. Banzai Double Drop Raceway by ToyQuest;

3. Barbie FairyTopia Magic of the Rainbow: Rainbow Adventure Elina Doll and DVD Game;

4. Ben 10 Alien Voice Changer with Glasses by Bandai;

5. Crayola Sidewalk Paint Sprayer by Crayola;

6. Deluxe Spinning Web Blaster by Hasbro;

7. Dora Make A Splash Sprinkler by Imperial;

8. Hot Wheels Racing Timer by Mattel;

9. Moon Sand by Spin Master;

10. Pokemon Basic Figures and Deluxe Figures by Jakks Pacific;

11. Spiderman 3 Action Figures; and

12. Tamagotchi Connection V4 by Bandai.

As children increasingly put down traditional toys at earlier ages for flashier, higher-tech gadgets like Apple Inc.’s iPod, toy makers appear to have reached the following conclusion: If you can’t beat ‘em, join ‘em. 

At the American International Toy Fair in New York, toy makers signaled they’ve adapting to the changing marketplace, with many exhibitors showcasing PC-compati ble toys that can play music from an MP3 player.  

“The toy industry manufacturers and the youth product manufacturers really upped the ante in terms of looking at what kids of today are interested in and how to make toy products for that market,” said Reyne Rice, a toy trends specialist at the Toy Industry Association. 

Many are hoping the balancing act between technology and traditional play translates into strong sales.   

Hasbro Inc., the nation’s second-largest toy maker, previewed its “Power Tour Electric Guitar” at the fair, which not only teaches users guitar basics, but also functions as a speaker for their MP3 player. 

The company also introduced ”I-CY,” a robotic, dancing penguin that dances to music from an MP3 player. 

Meanwhile, Robosapien Media showcased the “WowWee,” a singing, dancing robot that plays MP3s, while Erector rolled out the Spyke, a robot equipped with voice-over Internet protocol (VoIP) and a video camera. 

And yeah, it too plays MP3s. 

Even rival fashion dolls Barbie and Bratz have jumped into the fray. 

Mattel Inc.’s Barbie brand introduced “Chat Divas,” a doll that can move and lip synch to music from an MP3, while MGA Entertainment updated its Bratz Big Babyz line with a doll that basically does the same thing. 

Even pre-schoolers can get in on the fun. 

Hasbro’s Playskool division previewed its “Made for Me” infant toy line at the fair, which includes an MP3 player that is pre-loaded with 50 songs. It gives parents the option of downloading more music. 

Book sellers are champing at the bit for the July 21 release of “Harry Potter and the Deathly Hallows,” the seventh and final installment of J.K. Rowling’s wildly successful fantasy series, which has sold 325 million copies worldwide.

And with some industry experts expecting Harry Potter 7 to become the fastest-selling title of all-time, an honor currently held by the sixth installment, “Harry Potter and the Order of the Phoenix,” retailers are looking to capitalize by offering a slew of early discounts for customers pre-ordering the book.

The pre-orders ensure hard-core fans will be able to get the book the day it comes out, helping them to avoid the inevitable disappointment that will ensue in the event book 7 is sold out, said Al Greco, a professor of marketing at Fordham University and an analyst for the Book Industry Study, which produces an annual study of book sales.

The pre-orders also function as a key harbinger of demand, enabling publishers to know how many books they will need to print.

“When Harry Potter 5 came out, they did not have enough printed copies to meet demand and Scholastic had to go back to press and print more copies,” Greco said, adding that it will be heavily discounted.

Amazon.com Inc.’s early returns suggest demand will be higher than ever. 

The online retailer said Friday that first-day advance orders rose 547 percent from book six and is offering early buyers the book for $18.89, 46 percent off the list price of $34.99 

Wal-Mart Stores Inc. is offering pre-orders for $17.27

Meanwhile, Barnes & Noble, the top U.S. bookseller, is offering Harry Potter 7 for $20.99, or 40 percent off, but is allowing members of its awards program to order it early for $18.89.

Borders Group Inc., the second-largest U.S. bookseller, is selling pre-orders for $20.99, while wholesaler Costco Wholesale Corp. is also selling it for $18.99.

Americans shook off their turkey-and-cranberry hangovers and hit the stores early on Friday, anxious to start holiday shopping and to take advantage of deals offered by all kinds of retailers.

But many shoppers had second thoughts, frustrated by long lines to get into stores and at check-out counters.

For example, Monique Hand and a friend left home in Paterson, New Jersey, at 2:30 a.m., bound for New York’s Woodbury Common outlet center, which opened at midnight. But when they arrived two hours later, the crowds, lines and a full parking lot were too much to handle, she said.

“I’ll never do this again,” said Hand’s companion, who preferred not to give her name.

Jeff Dugan, an office technology manager who came shopping with his wife at the Garden State mall after they could not get into the parking lot of a Best Buy in West Paterson, New Jersey, at 6 a.m., said getting up so early was not worth it.

“Our plan didn’t work … we came out too late at 6 a.m.,” Dugan said.

Reuters is watching retailers’ hits and misses all day and wants to hear about how your shopping day has gone. At the very least, we want to know how you dealt with your leftovers!

Staples has concocted a remedy for customers unable to say “that was easy” about their Christmas shopping. And the office products retailer has enlisted crooner Engelbert Humperdinck to help.

In order to prevent  what it deems “mediocre gift-giving”, Staples formed the “Department of Unexpected Gifts,” which will be featured in an advertising campaign starring Humperdinck, in what will be his debut commercials on U.S. television.

The Department of Unexpected Gifts is a team of gift “experts” and includes characters such as the “Sweater Lady,” the “Holiday Dancer,” the “Arctic Nomad,” the “Taste Maker,” and a reindeer named Mr. Nibbles.

Here are the top 5 gifts recommended by the department:

1. The iSpot chair, which has in-arm speakers and an arm pad earphone dock that is compatible with iPods, MP3 players, or any gaming system. ($199.99)

2. The Canon PowerShot A540 Digital camera. This is for the wife who says “she doesn’t need a thing,” the department said. ($199.98)

3. The Staples MAILMATE Shredder, which it says is powerful enough to shred 10 folded sheets of paper, CDs, DVDs and credit cards — for people who hate junk mail. ($69.99)

4. The Lenovo 3000 C200 laptop computer. ($699)

5. The Mio DigiWalker C310 portable GPS navigation system. It’s great for those who hate asking for directions, the department said. ($399)

This couldn’t have been what Englishman William Addis had in mind when he invented the first toothbrush ever to be mass-produced back in 1780.

Back then, people often cleaned their teeth by dipping a rag in a salt solution or sulfur oil while rubbing back and forth. Or, in the case of a lot of people, they just did nothing with their teeth — until they fell out of their mouth and they had to clean them out of the wash basin.

Addis introduced a toothbrush which featured hairs from a cow’s tail attached to the animal’s pared down thighbone.

Today the cow thighbones and hairs are long gone, with toothbrushes now made mostly of plastic and nylon. 

You can even listen to Beyonce while you do it.

Toy maker Hasbro Inc.s Tiger Electronics is unveiling its TOOTHTUNES toothbrush this month, which plays music from pop stars like Black Eyed Peas, Hilary Duff and Beyonce. 

As you brush, the vibrations trigger music which is heard through the inner ear for two minutes, which the American Dental Assocation says is the amount of time needed to effectively brush. In order for the music to play correctly though, brushers have to turn off the water, and maintain a brisk pace while applying the right amount of pressure.

Hasbro said it will launch the toothbrushes this month in the New York market and on www.toothtunes.com. The company also said it will sell TOOTHTUNES nationwide next spring. The battery-powered toothbrushes will cost $9.99 each, the company said.

If only George Washington could see us now.