Lockdown brings double digit development to Lego as households construct together

2021-03-10.

File Photo: LegoFile Photo: Lego

Lego went back to double digit development in 2015, as households locked down by the coronavirus stayed at home to construct designs together, the Danish toymaker’s CEO stated.

Chief Executive Niels B. Christiansen stated years of financial investment had actually settled in the nick of time for the pandemic, with an enhanced online sales system and brand-new sets to construct from plastic bricks, such as robotics that can be set on a smart device.

“COVID-19 has accelerated trends that were already in motion. More people shopped online,” he stated. “We’ve seen more families at home building together.”

Lego has actually been looking for years for a formula to restore a decade-long double digit development streak that pertained to an end in 2017. That year the family-owned company struck the reset button, generating Christiansen as CEO.

Sales in 2015 grew 13% to 43.7 billion Danish crowns ($ 6.98 billion, up from 6% development in 2019, while running revenue increased 19% to 12.9 billion crowns, Lego stated in a declaration.

“For the past two years we’ve made large-scale investments in initiatives designed to support long-term growth,” Christiansen stated.

“In 2020, we began to see the benefits of these, especially in e-commerce and product innovation.”

Lego would work with “several hundred” staff members to enhance digitalisation even more in 2021, Christiansen informed Reuters.

He decreased to state just how much online sales grew in 2015, however stated the variety of visitors onLego com doubled to more than a quarter billion in a year.

Rival toy maker Mattel, behind the Barbie brand name, in February reported 2% yearly net sales development for 2020, while Hasbro, the maker of Monopoly, saw net income decrease 8% for the year.

Christiansen stated Lego acquired around 1 portion point of market share internationally, getting in the majority of its markets.

The company likewise increased its variety of physical shops by 134, consisting of 91 brand-new outlets in China, its most significant development market. The business anticipates to open 120 shops in 2021, 80 of those in China.

Lockdown brings double digit development to Lego as households construct together