Lego builds sales with Star Wars and Harry Potter kits
Lego built sales growth last year, defying the shrinking toy market, as shoppers snapped up Star Wars and Harry Potter themed kits.
Revenue jumped six per cent last year to 38.5bn Danish krone (£4.48bn), up from three per cent the previous year, putting it ahead of Barbie owner Mattel and Hasbro, the maker of My Little Pony.
Operating profit was up one per cent to 10.8bn krone and net profit increased three per cent to 8.3bn krone.
The latest versions of its classic kits as well as Star Wars, Harry Potter, Marvel Avengers and Disney princess lines performed strongly, the company said.
Growth was also driven by Lego’s move into new markets, particularly expansion within China. The toy firm now has 570 stores globally, with plans to open around 150 more this year with a focus on China.
Chief executive Niels V Christiansen said: “We are very pleased with this result and I would like to thank our dedicated colleagues for their amazing contribution.
“It was a strong year where we outperformed the toy industry and grew consumer sales and market share in all our largest markets.
“We also expanded our presence in newer markets which helped us achieve our ambition of introducing learning through Lego play to many children for the first time.”
Ruth Griffin, retail and leisure lawyer at Gowling WLG, said: “To fly in the face of the downward trend for the toy retail market is a huge achievement and demonstrates Lego’s ability to successfully split its operations and tirelessly innovate within every revenue stream – while there are surprises around every corner in such a competitive, aggressive space, the steadfastness of Lego’s innovation and investment in evolving their brand is a continuing guarantee against this.”