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Read the Wall Street Journal article WSJ_Toys_20220719 ("Hasbro Stocks Up on Toys Ahead of Holiday Season") attached to this assignment. What is the risk reduction technique in which Hasbro has engaged? WSJ Toys 20220719pdf co Stocks Upon Toys Ahead of Heliday Seasoe - WSJ PUSINESSEARNINGS Hasbro Stocks Up on Toys Ahead of Holiday Season Toy company's inventory levels climb nearly 75% as it tries to avoid supply-chain problems ahead of key selling season By Connor Hart July 19,20221235 PMET Hasbro inc. HAS 2.11A is beefing up inventory levels to make sure it has enough toys and games available under the tree for the critical holiday season. The maker of Monopoly board games and My Little Pony dolls on Tuesday reported holding $867.5 million of inventory at the end of June, up nearly 75% from a year earlier. That represents Hasbro's highest quarterly inventory levels going back neariy three decades, according to publicly available data. The rush to stock up on toys comes after supply-chain problems last year wreaked havoc on the industry, with delays in getting some toys to shelves and higher-than-normal out-ofstock levels in the weeks ahead of Christmas. when roughly half of all toy sales are made. Hasbro said it wants to have enough toys to avoid any problems in the second half of the year, when it has new products coming out, toys tied to entertainment like a coming "Black Panther" sequel and the holidays. Historically. Hasbro's inventory peaks between August and December. This year, the company accelerated plans to move a large chunk of purchases between May and July. This timeline shift puts the company in better shape to handle the holiday season, despite ongoing supply-chain disruptions, higher inflation and fears of a coming recession, according to Chief Financial Officer Deborah Thomas. "We are well positioned this year with the inventory to meet that demand, whereas last year, we were short and retailers were short," Ms. Thomas said on the company's quarterly earnings call Tuesday. Hasbro raised prices at the start of the second quarter as a means to offset higher production and freight costs that it took on to boost inventory. Ms. Thomas said supply challenges from last year are easing, with port congestion in particular showing improvement. Last year, a global supply-chain crunch set off a scramble among toy companies as they raced to get their products to retailers ahead of Christmas. Hasbro started using more ports and shipping lanes to get its products into its key markets. Still, the toy industry was able to post strong sales last year. The research firm NPD Group Inc. said U.S. toy sales rose 13\% to nearly $29 billion in 2021 , as strong toy sales continued during the pandemic and were boosted by government stimulus spending. That has cooled of late, with toy sales up just 1% in the first four months of the year, according to NPD. Habre Stesks Up on Toys Ahead of Heliday Season - WSI Witpe:thww wsj comvarticlevhatbro-stockh-up-on-toys-thead-of 2 The higher inventory levels came as Hasbro reported a net profit of $142 million, or $1.02 a share, for the period ended June 26, compared with a loss of $22.9 million, or 17 cents a share, in the year-ago quarter. Excluding items such as acquisition costs and amortization, Hasbro said per-share earnings were $1.15 a share. Analysts polled by FactSet expected adjusted earnings of 94 cents a share. Revenue rose 1% to $1.34 billion, with unfavorable foreign exchange rates denting the top line by 3%. Analysts forecast $1.37 billion in revenue, according to FactSet. Results were lifted by its Wizards of the Coast and Digital Gaming segment, which includes games like Magic: The Gathering and Dungeons \& Dragons. Hasbro recently successfully fended off a board challenge from an activist that was pushing the company to explore spinning off that unit, among other changes. Hasbro's results come ahead of its main rival Mattel Inc., which is scheduled to report second-quarter earnings on Thursday. Write to Connor Hart at connor.hart@wsj.com Appeared in the July 20, 2022, print edition as Hasbro Boosts Inventory Earby For Holiday Rush