Lego blames sales slump on making too many bricks

Lego blames sales slump on making too many bricks

Lego said that apart from efforts to clear out its build-up of stock, consumer sales were flat, with a decline in established markets in North America and Europe balanced out with growth elsewhere including a double-digit upturn in China. The Danish toy giants are one of the most iconic, enduring and successful toy companies in history and the unassuming, colorful bricks that suddenly turn into devices of absolute torture when stepped on with bare feet remain incredibly popular with both the young and the young-at-heart to this day.

Lego is hoping to revive its flagging performance by increasing sales in Asia and embracing the digital age.

Lego's sales fell a year ago for the first time since 2004, after the company made too much stock, which it was forced to sell-off at a lower price.

In the late '90s, LEGO made an ill-advised decision to diversify away from colorful bricks, and into dolls, clothes, and books.

"We need to get LEGO focused on the right things", Christiansen said.

After 13 consecutive years of growing sales, LEGO have hit a bump in the road which has seen their profits slide.

"The target in coming years is to stabilise the business through continued investment in fantastic products, effective global marketing and improved operation", Christiansen said.

"There is no quick-fix and it will take some time to achieve longer-term growth", he said.

It has witnessed a strong potential for its business in China.

All in all, The LEGO Group reported a decline in revenue and operating profit for 2017, but ended the year in a better position. The company will open an office in Dubai this year to help boost sales in the Middle East and Africa. But analysts said the new offerings didn't perform as well as the Star Wars or "The Lego Movie" lines, fueling the retrenchment.

The company announced 1400 job losses last September as part of a drive to "stabalise" the company following the decline.

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