COPENHAGEN – Lego’s gross sales jumped 27% final 12 months pushed by new retailer openings in China and clients flocking again to its reopened outlets however are anticipated to normalise this 12 months, the toymaker mentioned on Tuesday after earlier halting shipments to Russia.
The family-owned firm mentioned it had outpaced the toy trade in all main markets in the course of the 12 months, when gross sales of its vibrant plastic bricks totalled 55.3 billion Danish crowns ($8.11 billion).
It opened 165 new Lego shops final 12 months, most of them in China, bringing the full variety of Lego branded shops to 832 worldwide.
Nonetheless, Lego Group expects development charges to fall again to single-digits this 12 months.
“The expansion we’ve seen over the previous two years has been extraordinary. Mid-single digits continues to be robust development for the sector and a stage that we consider is sustainable over the long-term,” a spokesperson mentioned.
Lego has benefitted from a decade-old technique of putting manufacturing near its key markets, chopping logistical points and prices at a time when the worldwide retail trade was reeling from the pandemic.
Nonetheless, gross sales in Russia and Ukraine will probably be hit. Lego has halted new shipments to the 81 Lego shops within the nation, that are operated by Ingenious Retail Group, as a consequence of Russia’s invasion of Ukraine.
The corporate, which employs round 24,000 folks worldwide, declined to say what quantity of its gross sales the Russian market accounts for. Lego has 80 workers in Russia.
“It is a risky and quickly creating scenario, and we're monitoring it carefully. It's too early for us to take a position about its influence on demand,” a spokesperson mentioned.
Lego’s working revenue grew 32% to 17 billion crowns in 2021. Among the many prime promoting constructing units final 12 months had been Lego Metropolis, Technic, Harry Potter and Star Wars.
($1 = 6.8168 Danish crowns)
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