LEGO appears to be bucking the trend of the toy industry, having reported record sales and a rise in profits in its latest financial results.
The Danish toymaker has seen a strong demand for its Harry Potter licensed lines, as well as its LEGO City lines such as the Police Station, enough to have lifted its revenue six per cent for $5.8bn.
According to the firm, net profit increased three per cent to DKr8.3bn.
LEGO’s 2019 year end results cement the company’s position as the industry’s leading toymaker.
“It was a strong year where we outperformed the toy industry and grew consumer sales and market share in all our largest markets,” said Niels Christiansen, LEGO’s chief executive. “Our industry, like many others, is being redrawn by digitalisation and global socio-economic shifts.”
Christiansen has told Reuters that he would aim for single-digit revenue growth again in 2020, to allow for further investments into IT, new stores, and production innovation.
Harry Potter and Marvel’s Avengers saw strong sales throughout 2019, but it was classic LEGO ranges such as the LEGO City line and LEGO Technic that pulled in the majority of the revenue of the last 12 months.
“Of course, those are older themes, but as you know, we replace 60 per cent of our products each year,” said Christiansen. “We actually consider these themes ‘evergreen’, which constantly need to be relevant.”