Lego's U.S. sales outpace overall industry
By Staff -- Playthings, 2/19/2008 9:55:00 AM
February 19, 2008 – In the face of a 2 percent drop in domestic toy sales last year, The Lego Group chalked up its third consecutive year of U.S. consumer sales growth in '07, outpacing the U.S. toy industry.
Globally, the company’s year-end result is considerably better than anticipated at the beginning of 2007, when both decreasing sales and decreasing revenue were forecast. In fact, in announcing its 2007 financial results today, the company reported Lego achieved growth last year across all of its key markets, attributable to a "renewed strategic focus on balancing its core business and products with some of the strongest global licenses among children."
Profit for the year before tax reached $279 million, compared with $253 million in 2006. At the same time, revenue amounted to $1.584 billion, compared with $1.539 billion in 2006, representing an increase of 2.9 percent.
"In the light of our expectations for 2007, I consider the results very satisfactory," said Jørgen Vig Knudstorp, CEO, Lego Group. ”It has particularly been very satisfactory for us that we have been able to meet most of the demand for Lego products despite our extensive supply chain relocation activities. This has only been possible through the impressive effort made by our employees.”
In a year of heightened competition from video games and consumer electronics, classic Lego building sets fared well.
Accorting to research company NPD Group, Port Washington, NY, an 11.5 percent gain in consumer sales in '07, compared with '06, further bolstered the brand’s number one rank in construction toys, with category share increasing 6 points to 66 percent from 60 percent, the highest level in five years,
“We have successfully realigned our business strategy to balance our portfolio between core, classic Lego play, homegrown stories and themes, and the best licenses in the industry to drive the strongest Lego momentum we have seen in the U.S. in years,” said Søren Torp Laursen, president, Lego Systems Inc., the company’s North American division. “This accomplishment is perfectly timed to coincide with the 50th anniversary of the original Lego brick in 2008.
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