After 13 consecutive years of growing sales, LEGO have hit a bump in the road which has seen their profits slide. Toyworld Mag investigate further.
Lego has blamed the weak performance on “cleaning up” unpopular product lines, as well as a drop in sales in Europe and North America.
Revenue for 2017 dropped by 8% to 35b Danish kroner (£4.2b; $5.8b), compared to 37.9b kroner in 2016. Pre-tax profits slid 18% to 10.4bn kroner in 2017.
The company has been increasing sales in new markets, particularly in Asia. Lego said that it saw “strong potential” in its business in China, where sales enjoyed double digit-growth last year.
In September, Lego said its half-year results had suffered because it had stretched itself too thin by diversifying into products that were not toys, such as the Lego movies.
