Toy sales are struggling, but Legos remains on the up and up

Have you ever thought about the absolute hold Lego has on the world? And we’re not just talking kids – adults in their 30’s and 40’s are just as (maybe even more) likely to go all in. Much like Disney, Lego has people of all ages gripped tightly in their plastic grasp, which is pretty spectacular. But how? 

Despite facing its first decrease in net profit since 2017 and encountering reduced sales in China, Lego reaffirmed its status as the world’s leading toymaker based on company results revealed last Tuesday.

The Danish toy powerhouse saw its overall sales marginally increase by two percent to 65.9 billion kroner ($9.6 billion), marking a historic high for the family-owned enterprise that continues to expand its market presence.

Regardless of the challenging economic backdrop, sales directly to consumers via Lego’s retail outlets and online channels surged by four percent, underscoring the company’s resilience in a year overshadowed by significant inflationary pressures across the industry.

“In five years we’ve grown 81 percent organically, where the market has grown 12 percent,” Lego chief executive Niels Christiansen told AFP in an interview found here. 

“Every year we’ve taken market share and the outlook for this year is that we would continue to take,” he continued.

With a portfolio full of a whooping 780 products, the company doesn’t have to rely on the success of just one or two of them. They’re all in demand, making Lego a company that will seemingly never slow down…

Unless millions of people decide to boycott it at the same time, which definitely isn’t happening. 

So, is that the only reason why they’re making remarkable profits despite the challenges our markets are facing? 

According to Christiansen, it’s as simple as that. 

“We’re not the type of company that has 25 percent of sales on one product,” the chief executive further explained in the interview.

And there you have it, folks. Gigantic Lego collections aren’t leaving any time soon, so that’s one less thing in the world to worry about.