Everything isn't awesome: Lego sales fall

  • Everything isn't awesome: Lego sales fall

Everything isn't awesome: Lego sales fall

With "too much" of the previous year's product idling in warehouses, "there wasn't enough room to get 2017 toys into the stores, and the toy trade is driven by newness", a company spokeswoman says.

Lego said that sales were particularly weak in North America and Europe. Lego said that it saw "strong potential" in its business in China, where sales enjoyed double digit-growth a year ago. Though they seem to be around more than ever, the LEGO Group has hit a snag in their profits.

The company said overall consumer sales were flat, but the figures were affected by a clean-up of inventories. "Probably not the type of supernatural growth we had before, but growing in line with the industry", Chief Executive Niels B. Christiansen told Reuters.

"There is no quick-fix and it will take some time to achieve longer-term growth", he said.

However, it seems as if LEGO's consistent popularity and cinematic exposure haven't necessarily translated into cold, hard cash, as the company has announced (via BBC) their first profits fall in thirteen years, with revenue dropping 8% in 2017 compared to 2016.

For this year, Christiansen said, "we will stabilize the business" by continuing to invest in new products and global marketing.

Lego added that it saw "strong potential" for the business after sales in China enjoyed double digit growth.

Lego tried to replicate the strategy in 2017 with offerings tied to "The Lego Batman Movie" and "The Lego Ninjago Movie". The company also will open an office in Dubai towards the end of 2018 to support efforts to expand operations in the Middle East and Africa.

Christiansen joined Lego in October after nine years as CEO of Danish industrial group Danfoss, taking over from Briton Bali Padda after just eight months.

All in all, The LEGO Group reported a decline in revenue and operating profit for 2017, but ended the year in a better position.