To those who have an eye on the business side of LEGO, they would be aware that, in spite the veritable non-stop flood of new sets and whatnot, the company has been a bit worried about their financial standing last year. It didn’t help either that one of the brand’s biggest retail partners, Toys R Us, has since closed its doors. But if we know anything about how LEGO runs as a business, it’s that they’re quick to realize where they have problems. By pegging their enterprise as having “grown complicated”, and taking steps to simplify things again, LEGO’s profits began turning around for the better in 2018.
Notwithstanding the loss of Toys R Us, LEGO has been able to report a rise in consumer sales for the earlier half of this year amidst flat rates in the company’s revenues. In spite of last year’s market uncertainties, LEGO’s profit gained some considerable traction and improvement even if the desired growth targets were still far from the vaunted growth of 25% in 2015.
LEGO prides itself on always bringing something new; the fact that 60% percent of their total product output in a year being new sets and minifigures. At present, sets from their Ninjago, Creator and Technic lines like the recent Bugatti Chiron (42083) are the hottest contributors to the rise in customer sales that the company has reported for 2018.
Western Europe and China have been noted as being the source of the increase in LEGO’s profits. CEO Niels B. Christiansen remarks his satisfaction at the stabilized growth of the old but constantly evolving brand, adding about China, “The Chinese appreciate and emphasize that children learn something when they play … There is a really nice fit between China and Lego.”
Source: Reuters