From Bricks to Billions: LEGO Sales Surge Despite Toy Market Slump
Whereas the worldwide toy business confronted a difficult yr, The LEGO Group continued constructing on its success.
LEGO, one of many few privately held toy firms to report earnings, says that income rose 2% in fiscal yr 2023 amid a 4% spike in shopper merchandise gross sales. The corporate’s DKK 65.9 billion (roughly $9.65 billion in U.S. {dollars}) in income outpaced the business due to a portfolio stacked with practically 50% new merchandise — its greatest providing ever.
CEO Niels B. Christiansen attributed final yr’s success to the enduring enchantment of LEGO’s numerous product portfolio and the corporate’s dedication to innovation and strategic investments.
“We’re happy with our efficiency on condition that 2023 was essentially the most unfavourable toy market in additional than 15 years,” Christiansen says. “We continued to develop on prime of three years of extraordinary progress and noticed robust momentum within the ultimate quarter of 2023.”
Key highlights from the fiscal yr embrace strong efficiency within the U.S. and Central and Jap Europe, partially offset by challenges within the Chinese language market on account of financial situations. In recent times, China has historically been a robust progress marketplace for The LEGO Group.
Whereas revenue fell barely final yr, The LEGO Group continued to spend money on its future progress by increasing its retail footprint, enhancing digital capabilities, and bolstering sustainability efforts. In 2023, the corporate opened 147 new LEGO-branded shops globally, reaching a complete of 1,031 shops. Moreover, it launched new play experiences similar to LEGO Fortnite and LEGO DREAMZzz, catering to numerous shopper preferences.
The highest performing themes included LEGO Icons, LEGO Metropolis, LEGO Technic, LEGO Star Wars, and LEGO Harry Potter.
LEGO says that it intensified its dedication to sustainability, with a 60% enhance in spending on environmental initiatives in comparison with the earlier yr. Plans are underway to double annual environmental spending by 2025 and additional improve the sustainability of LEGO merchandise.
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