• News
  • Money

Lego on the up after first sales and profits fall since 2004

Lego said in September it would lay off 8 percent of staff and that it had pressed the "reset-button", acknowledging its business had grown too complicated.

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

Nevertheless, new CEO Niels Christiansen believes Lego is in better shape than it was a year ago, even though he also admitted he did not like the results.

Operating profits fell 17% to kr10.4bn (£1.2bn).

Turns out, the growth was "supernatural": the company grew too aggressively, and a year ago, when sales lagged in Europe and North America, they found themselves left with warehouses full of excess bricks, which in turn limited their ability to roll out new products.

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.

Euromonitor toy analyst Matthew Hudak said the sales decline comes after the company scored a major win with Star Wars toys tied to the release of "The Force Awakens".

"Households can have too many Lego products and not want more each year", Hudak said. But its success may have limited demand past year. While the 2014 The Lego Movie and some of the company's video games were successful, its big 2010 bet on an online multiplayer computer game, Lego Universe, was a flop. LEGO is more popular than ever in those mediums, but the product just hasn't seen it translate into the more tangible toy market. A year ago in the month of September Lego cut 1,400 jobs worldwide.

A LEGO spokesperson, however, told Gizmodo in an email that while annual revenue dropped, consumer sales "remained steady".

The unlisted, family-owned company liquidated its stock in 2017 by reducing prices.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Justice Department to sue California over 'sanctuary' laws

In Fiscal Year 2017, ICE booked 323,591 aliens in custody, 41,880 of whom were detained in California , according to the lawsuit . The lawsuit targets three California laws that specifically interfere with the federal responsibility to deal with immigration.

RE: Mercedes-AMG C43 facelift for Geneva

A fancy new steering wheel and wider infotainment screen are the key updates inside the 2019 C43's cabin. The C43's 3.0-litre V6 petrol engine now churns out 287kW of power at 6100rpm, an increase of 17kW.

Unprompted, creepy laughing from Alexa is freaking out Echo users

Another Twitter video, posted by user @annielbonannieTN, shows Alexa producing the laughter from the default Amazon Echo speaker. Amazon's Alexa has been letting out an unprompted, creepy crackle - startling users of the best-selling voice assistant .

Stormy Daniels sues Trump over hush pact

The agreement mentions the existence of certain "still images and/or text messages" that were authored by or relate to Trump . HuffPost also reached out to the White House and Cohen for comment but did not receive a response as of this posting.

President Trump hails XI for abolishing term limit

However, watch for signs of political fallout from this decision over the next year and possibly more anti-corruption purges. Despite Trump's praise for the "great" Chinese president, Xi Jinping's record in human rights is less than seller.

New Zealand vs England 4th ODI

Jonny Bairstow's 106 balls 138 and Joe Root's 102-run knock proved ineffective against Taylor's blitzkrieg on Wednesday evening. England then exerted itself and shut down the run flow for more than an over, tipping the balance of the match in its favour.

USA roughly and blatantly deceived Russian Federation during Euromaidan, - Putin

Last December, politicians close to Putin pointed the finger at Washington saying they were trying to "interfere" in the country's electoral process.

War-scarred Sierra Leone picks president

Voter freebies and funding for campaign materials could "potentially influence the voting public" in the APC's favour, it added. Sierra Leoneans are headed to the polls as voting gets underway to elect the country's next president and parliament. .

Australia Wins Heated First Test

Australia were trying to make sure that was something weighing on his shoulders. "That says a lot about his character". All these batsmen are thought to be entering the twilight or, in Elgar's case, the latter half of their careers.

Range Rover SV Coupe revealed at Geneva

Each SV Coupe will be hand-assembled by the experts at the SVO Technical Center in the United Kingdom - a first for Range Rover . If you see one in the wild, let us know - especially if it's putting its 10.4 inches of ground clearance to good use.