LEGO reports record profits

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It wasn't long ago (actually, 9 years ago) that the LEGO company was in dire straits and there were fears that it might be snapped up by a competitor like Hasbro or Mattel. However, an article in Bloomberg earlier in the week reports that LEGO has taken the top spot as the most valuable toy company in the world and is now worth more than Mattel. I'll let you read the report and watch the video for yourself, but the headlines are:

  • Revenues were up by 25% last year, and have tripled since 2007.
  • Earnings of $1bn were made on $4bn of sales last year.
  • The company is now valued at $14.6bn, marginally more than Mattel.
  • The three children of Kjeld Kirk Kristiansen, who is Denmark's richest man, are now billionaires.

That's quite a turnaround from the company's 'dark ages' in the early 2000s when its bank stopped lending it money because of the losses it was making. The road to recovery is well documented, but I believe we have Jorgen Vig Knudstorp, who took over as CEO in 2004, to thank for the impressive turnaround and I think the company is in safe hands.

Now, if only they'd reduce the prices a bit...

43 comments on this article

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By in United States,

All thanks to resellers buying record numbers of the Fire Brigade!

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By in United States,

"If only they'd reduce the prices a bit..." I thought the same thing!!
It's reassuring that they are doing well.

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By in United States,

I never thought Friends would be such a roaring success. But, hey, if it keeps LEGO in the number 1 spot, then let it be! I'm just glad they really got into licensed themes like LotR/Hobbit, Star Wars, etc.

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By in United Kingdom,

What a guy! Some great, and humble responses to the questions regarding being no.1 and the competition from mega blocks. An interesting watch, and good to know the company is in such reliable hands. Didn't get the impression from his remarks that the board games had been great sellers, so will be interesting to see if we see a smaller range in the future.

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By in United Kingdom,

For a while I used to think that Lego would be a certainty to be bought over by Disney. It has a similar family friendly mentality, it's associations with Marvel and Star Wars, plus there is already Lego stores at some Disney attractions. Looking at these numbers though I can see why they would never want to sell. As long as Lego keep bringing out products based on popular licences.

If Lego really want to boost their sales they should make ALL polybags available to buy from their stores and not have collector's resorting to ebay or trades to get them. How much have you spent on Polybags and how much has actually went to the Lego Group? I have rarely bought a polybag from a Lego store and I have about 100+ of them.

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By in United Kingdom,

The amazing customer service probably goes along way aswell. One of the best companies I have ever come across in this regard and an area where most fall way short. Clearly reaching out to Girls via friends and contining to draw in teenagers and adults with modulars and ucs' is working wonders in addition to overall broader appeal via IP's.

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By in Spain,

It's great to see a great company like Lego soaring in success as idefinatepy consider it the best toy in the world. As for lower prices, the demand and inflation make me expect it to go in the direction we don't want it to go (increase).

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By in United States,

Wow, awesome!

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By in United States,

yet they continually cut discount opportunities to AFOLs and LUGs...

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By in Philippines,

Congratulations to TLG! Now, if they could also find a way to crack down on those bootleggers...

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By in United States,

As a sign of good faith to all of us who brought them from the brink of collapse, :P it would be nice to see lower prices(at least for us VIP members). Seeing as I came out of my Dark Age in '07, I like to think I played a big part in this. XD

@rawbob- a big +1 for me to polybags. The only time I have ever gotten them from TLG themselves was when they were a free bonus. I don't have quite as many as you do, but I've bought/traded my fair share.

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By in United Kingdom,

I certainly agree with the last comment though I can't really see it happening any time soon... or ever

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By in United States,

I'm fairly confident Huw's "lower prices" aside was tongue in cheek. Sure, we want to pay as little as possible (and Brickset is of inestimable value here!), but then begin the quality/Made in China/ABS/plain ol' plastic disputes.

Friends, Ninjago, Modulars... Three cheers for the triple threat!

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By in United States,

What turned around the company was obviously... Bley!

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By in United States,

Now if they only released better Star Wars vehicules like the: Trade Federation Landing Craft, a Haillfire Droid like the one in 2002-03 with CIS colors, a better line of Episode 3 sets (who does not want more Kashyyyk troppers?), a six legged Crab Droid, some Legend of Zelda sets. But I will still support them because I like Legos.

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By in United Kingdom,

You don't become the worlds biggest toy company by reducing prices!

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By in Japan,

In the video, is that big ring above Dr Knudstorp's head a halo? :~D

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By in United States,

I love the answer to the question about M@#! B$#@# when he basically said they don't concern him....classic!

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By in Poland,

I'm 30yo male and I love the color Friends introduce. You don't have to be a young girl to appreciate pastel colors and hue variety. I hope that TMNT line will prove that to be the case for younger boys as well. :)

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By in United States,

I didn't realize Lego had a "dark age" because I never felt the demand ever wavered. 21 years old and I'm still intermittently collecting sets and even backtracking and purchasing old sets from the 1990s and early 2000s because it brings back childhood memories. Again, it's nice that the Lego brand caters to children and adults and everything is looking very optimistic for the company.

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By in United States,

"The three children of Kjeld Kirk Kristiansen, who is Denmark's richest man, are now billionaires." :|

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By in United States,

I believe they are the number one toy company, because I spend so much money buying their products, but their customer service is horrible. They messed up my order and when I called to let them know that, as I have in the past, they told me that they cannot fix it as they have sold out of the product and that I complain too much. That is from a company that is making millions of dollars, yet they cannot send out the orders properly or take time to please their customers. They are like every other company: money, money, money and to heck with pleasing the customer. I hope they go down hill!

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By in United States,

@ bellybutton290 - I agree with your statement on customer sevice. Their's is the best I've ever come across. Whenever I contact them I always recieve a nice response with the answer to my problem. I have contacted other companies and they didn't even respond, e.g. Target.

This is really amazing news given that LEGO is a private European company from a small country. They certinly deserve this title.

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By in United Kingdom,

^ what? Lego has the best customer service in the world, having emailed them about breaking my goblin king maxi figure, replaced free of charge within a week. Same with the elrond minifig cape, another sent in the post straight away. They keep record of people who try to claim too often, sounds like you fall into that catagory

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By in Canada,

Mr. Vig Knudstorp gave a beautiful answer to that first question. It's nice to know there's still one company out there that still puts quality into their work and maintains a little bit of dignity, and hasn't become sell-outs. On another note, something about that reporter just kind of annoyed me...

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By in Canada,

I definetly hope the prices go down even juuuust a little.

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By in Czech Republic,

I'll be happy to pay current prices as long as I don't get 3 different shades of yellow in one set...

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By in Canada,

I want to see places like Canada and Europe (other reasonable markets, etc) get the same MSRP prices the United States has. I want the Lego Group to put pressure on corrupt price-fixing retailers like TRU who mark up their Lego. I also want Lego to hold more online sales with better discounts than 20%off! I'm talking about something along the lines of 'quick sales' where they shove a few sets temporarily into the Sales&Deals section for 30%-50%off... either that or offer free shipping and an additional discount to the AFOL community all year-round.

I spend thousands of dollars on Lego every year, and I'm more than willing to keep spending that kind of money, but as of late it has felt like the number of sales/bargains has decreased to the point where I'm not motivated to buy.

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By in Canada,

^^I'm not sure what you're talking about - Prices in Canada will never be the same as the US.....35 million people compared to 300 million.
Also TRU sells Lego at the same price as The Lego Store. And Every week TRU has Lego on sale in their flyer. Usually 20% on a different theme every week. That's the only time I buy new sets.

But to comment on the story this news gives me a warm fuzzy feeling inside. A true success story as well considering they were on the brink of disappearing just 10 years ago

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By in United States,

^ TRU here in the US has pretty much all LEGO sets marked up 10-30% over MSRP. Their frequent sales barely bring the sets back down to MSRP in most cases. Exceptions are becoming more and more rare unfortunately.

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By in United States,

Guys, did you notice the Friends commercial?

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By in Australia,

Jorgen <3

Great news, take that you filthy Mega Bloks!

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By in Canada,

@Suckerpunch83

Actually TRU has been creeping the prices on a lot of newer licensed sets $2, $5 and $10 over what Lego charges in the Lego Store. I'm hoping when Target opens they stop doing this else I'll be buying my lego at Target.

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By in Australia,

It proves two things. Lego has become increasingly popular AND $100 for a few bags of plastic bricks is WAY overpriced ;)

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By in United States,

My friends and I really started getting into LEGO around 2002-2003. My parents think that's what put LEGO back in business considering how much they spent on LEGO sets those first few years. :-)

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By in Germany,

I think LEGO and many of us (including me) share these Dark Ages. I am very happy that those are long gone.

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By in United States,

I REALLY hope the people posting negative comments about LEGO are being sarcastic, as I, and others on this site, probably agree that the LEGO CS dept is easily best in the business.
I have had my issues with LEGO CS (Including missing out on getting three $50 Holiday trains because their system was showing back order and the order never shipped) and aside from the trains (which was more a system glitch, anyway) EVERY time they have come through to fix the issue without so much as a peep to the contrary, and as others noted in their experiences, LEGO CS is generally good to excellent.
In other words, if you think LEGO and its CS are so bad, go see if you have the same satisfaction with Megablocks or their CS.

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By in Israel,

Thats great news for sure... now I hope they lower prices :P

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By in United States,

LEGO CS is great, until they stop sending out replacement parts. Yes, some people do "complain" too often, but what else are you supposed to do when each set has cracked pieces before you even build the set? I think their CS works well for what it can, but until the start having better quality consistently I don't know what else to do other than ask for replacement parts. If no one else has encountered as many broken/cracked pieces as me, then consider yourself lucky.

I'm glad TLG is doing well. I was in my Dark Ages when they were going through theirs, so if they would have collapsed or been sold off, I wouldn't have known the difference.

I would assume they don't sell a lot of polybags is to allow the stores to have some commercial appeal. Stores may not want to do business with them and carry their product if they don't get some exclusives to try to attract customers. That might burn a lot of bridges.

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By in United States,

For all the other companies that see this news, I fear that they will also start to produce something like plastic bricks.

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By in Australia,

@dougts Hi, I don't think you realise how fortunate you are to live in a land where the prices are so low and you have LEGO stores, low shipping, great product distribution and availability. Try living in Australia or NZ where one set as an example costs us $349USD more for the same set, made in the same place that you get.
And we get the privlege of being blocked from buying from the US. Trust us you are very lucky and a lot of Australian's are very annoyed at they way we are treated.
http://legoozripoff.blogspot.com.au/2013/03/another-disgusting-rip-off-lego.html

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By in United States,

I don't like companies like Mega blocks that steal LEGOs thunder:[

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