The LEGO Group reported earnings for the full year ending December 2019. Revenue for the period grew 6 percent to DKK 38.5 billion compared with 2018. Consumer sales grew 5.6 percent compared with 2018 and overall global market share increased.
SEE ALSO : Lego opens first New Zealand store
Operating profit was DKK 10.8 billion, an increase of 1 percent compared with 2018, while net profit grew 3 percent to DKK 8.3 billion. This growth was achieved alongside the Group’s bold investments in a range of initiatives designed to deliver growth in the long term.
The LEGO Group CEO, Niels B Christiansen said: “We are very pleased with this result and I would like to thank our dedicated colleagues for their amazing contribution. It was a strong year where we outperformed the toy industry and grew consumer sales and market share in all our largest markets. We also expanded our presence in newer markets which helped us achieve our ambition of introducing learning through LEGO® play to many children for the first time.”
“Our industry, like many others, is being redrawn by digitalisation and global socio-economic shifts. We are leveraging our strong financial foundation to invest in initiatives that will allow us to keep ahead of these trends and enable growth in the long term. This includes innovating play, innovating our retail ecosystem and investing in new market entries so that we are well positioned to inspire young builders for generations to come,” continued Niels.
LEGO grew consumer sales in all market groups. The Americas and Western Europe grew single digits, while China grew strong double-digits.
LEGO expanded its global retail ecosystem opening 150 LEGO branded stores; upgrading its e-commerce site; and strengthening its collaboration with retail partners. It now has 570 stores around the world, with plans to open approximately 150 more in 2020, the majority in mainland China. Visitors to the company’s revamped LEGO.com e-commerce site increased by 27% in 2019 and positive progress with retail partners contributed to consumer sales growth.
Christiansen said: “The retail environment is constantly changing. Consumers are looking for immersive brand experiences instore, and value and convenience online. We are stepping up investment in all our retail channels and working closely with our partners to connect with people wherever and however they want to shop.”
China remains a strategic growth market for the LEGO Group. In 2019 it expanded its presence in tier three and four cities and now has 140 retail stores in 35 cities, including flagship stores in Beijing and Shanghai.
SEE ALSO : Kering announces 2019 full-year report
During 2020, the Group plans to open an additional 80 stores in around 20 new cities. It also developed its e-commerce presence on partner platforms and recently renewed its partnership with Tencent as part of plans to engage consumers and shoppers through unique digital experiences.