Toyworld Mag: LEGO reports fall in sales

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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.

Mark Newbold
Mark Newbold
Exploring the galaxy since 1978, Mark wrote his first fan fiction in '81 and has been a presence online since webpage Fanta War in 1996. He is the EiC and Daily Content Manager of Fantha Tracks and currently contributes to ILM.com, SkywalkerSound.com, Star Wars – Das Offizielle Magazin, Journal of the Whills and Starburst Magazine, having previously contributed to magazines Star Wars Insider, Geeky Monkey, TV Film Memorabilia, Model and Collectors Mart, partworks Build Darth Vader, Star Wars Encyclopedia, and Build The Millennium Falcon, and websites Jedi.net, Jedi News, StarWars.com, Lightsabre.co.uk, and Wirezone. He is the only podcaster to have appeared on every Celebration podcast stage since it began in 2015 (hosting it four times), and is the co-host of Making Tracks, Canon Fodder and Start Your Engines on Fantha Tracks Radio.
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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.

Mark Newbold
Mark Newbold
Exploring the galaxy since 1978, Mark wrote his first fan fiction in '81 and has been a presence online since webpage Fanta War in 1996. He is the EiC and Daily Content Manager of Fantha Tracks and currently contributes to ILM.com, SkywalkerSound.com, Star Wars – Das Offizielle Magazin, Journal of the Whills and Starburst Magazine, having previously contributed to magazines Star Wars Insider, Geeky Monkey, TV Film Memorabilia, Model and Collectors Mart, partworks Build Darth Vader, Star Wars Encyclopedia, and Build The Millennium Falcon, and websites Jedi.net, Jedi News, StarWars.com, Lightsabre.co.uk, and Wirezone. He is the only podcaster to have appeared on every Celebration podcast stage since it began in 2015 (hosting it four times), and is the co-host of Making Tracks, Canon Fodder and Start Your Engines on Fantha Tracks Radio.
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