Lego plans to increase investment in both stores and online with around 150 new outlets worldwide.
The company has reported financial results which show a 3% rise in net profits to £970m on revenues 6% higher at £4.5b. Online sales also increased 27%. This marks the second year of profit growth after sales fell in 2017.
Lego now has 570 stores globally, and has said it plans to step up investment in both stores and online with around 150 new outlets worldwide. Having opened 150 shops in 2019, the company has plans to open a further 150 in 2020, 80 of which will be in China, as Lego focuses on expanding its retail presence there.
Strong sales were experienced in Lego’s licensed ranges, such as Harry Potter and Marvel’s Avengers, but the core product range remained the top performer due to continued strong demand for Lego City, Lego Classic and Lego Technic.
Sales rose across all markets, with single-digit growth in Western Europe, including the UK and the Americas, while China enjoyed double-digit growth.
“It was a strong year where we outperformed the toy industry and grew consumer sales and market share in all our largest markets,” group chief executive Niels Christiansen commented.
He added: “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.” Lego said it wanted to tap into a demand for more immersive experiences across its store estate.
Niels Christiansen said it was “too early” to say what the impact of coronavirus will be on the group. However, he stressed that the situation “doesn’t change our strategy” or long-term investment plans.