LEGO Global Sales Grew 10% - First Half of 2016

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LEGO Global Sales Grew 10% - First Half of 2016

Post by Toys N Bricks » Thu Sep 08, 2016 9:44 am

The LEGO Group continues to deliver strong global sales growth. Existing lines such as LEGO City and LEGO Ninjago continues to be strong. Majority of the growth is attributed to the European and Asian markets. However, sales has been relatively flat year over year for the Americas region.

Key financial figures from the 2016 interim result:

Revenue in the first half of 2016 increased by 10% compared with the same period last year measured in local currency (i.e. excluding the impact of foreign exchange rate changes).


Revenue for the first half of 2016 increased by 11% in DKK to DKK 15,692m compared with DKK 14,142m for the same period last year.


Operating profit (profit before financial items and tax) for the first half of 2016 was DKK 4,655m compared to DKK 4,607m for the first half of 2015, an increase of 1% year over year.


Net profit for the first half of 2016 was DKK 3,489m compared with DKK 3,553m for the first half of 2015.


Cash flow from operating activities was DKK 3,947m compared with DKK 4,349m during the first half of 2015.

You can read the full 2016 LEGO interim press release report here.



Article Link: http://toysnbricks.com/lego-global-sale ... f-of-2016/
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Richard J.
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Re: LEGO Global Sales Grew 10% - First Half of 2016

Post by Richard J. » Thu Sep 08, 2016 7:10 pm

Of course sales are flat here. Lego costs a lot and many Americans are struggling to pay their bills. Plus the average parent just isn't buying Legos for their kids. They buy knockoff crap because it's cheap and they don't care. Seriously, every time I go to the store, I see parents buying junk toys for their kids because they're a dollar or two.

Even the parents with money and kindness toward their kids are mostly buying trendy fad crap or something with a major TV tie-in.

If you want kids to get into Lego nowadays, you need to really advertise again and make the kids beg for it, plus you need to pray for America's job market to improve.

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Re: LEGO Global Sales Grew 10% - First Half of 2016

Post by Brick & Blue » Thu Sep 08, 2016 7:17 pm

Richard J. wrote:Of course sales are flat here. Lego costs a lot and many Americans are struggling to pay their bills. Plus the average parent just isn't buying Legos for their kids. They buy knockoff crap because it's cheap and they don't care. Seriously, every time I go to the store, I see parents buying junk toys for their kids because they're a dollar or two.

Even the parents with money and kindness toward their kids are mostly buying trendy fad crap or something with a major TV tie-in.

If you want kids to get into Lego nowadays, you need to really advertise again and make the kids beg for it, plus you need to pray for America's job market to improve.
I don't agree with this at all. The last few times I have been in the LEGO aisle there have been a few parents with like 5 year olds, mostly buying $20-30 sets for the brat child they are with. I saw one grandma with her grandson and they were picking out a $60-$70 set for him... just because it was Tuesday.

So yeah sales are flat because the growth the last few years have been insane. So people are still buying at the same insanely high amounts they did last year, but LEGO is ripping us off more because they still make 10% more on 'flat' sales.

I hope sales and profit tank so the price of the sets get in check.

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Re: LEGO Global Sales Grew 10% - First Half of 2016

Post by crazybirdman » Fri Sep 09, 2016 9:45 am

if sales tank, they will most likely focus on making only what sells the best, not lower prices

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Re: LEGO Global Sales Grew 10% - First Half of 2016

Post by Brick & Blue » Fri Sep 09, 2016 11:39 am

crazybirdman wrote:if sales tank, they will most likely focus on making only what sells the best, not lower prices
One year the advent calendars were $50 and $40 and no one bought them because that's outrageous, the next year they lowered their prices, and they have stayed at the $30-$40 price.

I don't think LEGO is stupid, they are just greedy. So if sales tank I think they will realize they finally hit their top limit, like $150 for a City set with 1200 pieces, and will realize they can't do this forever.

Because what happens next year when gas prices double? Will LEGO prices go up even higher and use that as an excuse? This is the first year in awhile that I have seen clearance where I live hit 50% off. Probably because people can't afford a $120 550 piece space shuttle, or another price station for $100 (even though those aren't horribly price.).

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Re: LEGO Global Sales Grew 10% - First Half of 2016

Post by Luciant » Wed Sep 14, 2016 10:07 pm

You are also forgetting that over the past several years, Lego has been playing with prices, production, and discounts.

Discounts have all but dried up. When I came out of my dark ages, I had a rule not to buy a set unless it was 25% off and often times, I got 30-50% off most sets, and I bought pretty much every set. As I came to my senses and ran out of money, the discounts started drying up and I dropped that to 20-25% on sets i want, pull trigger. Now, I feel like I'm waiting forever to see a set at 20% off, much less 25 or even 1/3 off. TRU has a sale on Marvel / DC 20% off and most sets are not TRU Taxed yet... gonna pull the trigger, and hold receipts in case of better sale, but I doubt I'll see it.

They have also resulted in not producing as many sets and flooding the market like they used to either. You used to pretty much see all but a few sets hit clearance, and a good number usually too. Clearance has been very horrible sets that make it there, and not in great numbers either.

Lego has just found the correct supply/demand to get the pricing and sales they want. Their problem will be how to continue to expand the market. As stated above, the best ways are with TV Tie-Ins and Lego is getting destroyed in that area because they only want to stick to their own stuff. The toys I buy for my tots that get played with the most are the ones with shows attached to them that my children watch. I do everything I can to avoid letting my son see the Megablocks Blaze and the Monster Machines.
I have mixed feelings about new releases: I can't wait to see and get the new sets... but I can't figure out where I'm gonna put them or store them.

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