US LEGO sales soar in 2012

[pickleboy]

Nice work LEGO...

http://www.marketwatch.com/story/legos-us-sales-soared-26-in-2012-2013-02-07

FULL ARTICLE FROM THE WALL STREET JOURNAL BELOW:

By John Kell

--Strong demand for Lego's iconic construction sets lifted U.S. sales 26% last year

--Lego has now posted double-digit sales growth in the U.S. for eight consecutive years

--Lego's licensed and company-own brands have been well received

Lego A/S reported that U.S. sales soared 26% last year due to strong demand for the toy maker's iconic construction sets, growth that easily outperformed competitors as a mix of licensed and company-owned brands resonate with consumers.

The No. 3 global toy maker has now posted double-digit sales growth in the U.S. for eight consecutive years, according to data provided exclusively to Dow Jones Newswires, and in the most recent year, easily outperformed larger rivals Mattel Inc. (MAT) and Hasbro Inc. (HAS).

In December, Danish-based Lego said it was on track to hit $4 billion in sales globally in 2012, putting it within striking distance of supplanting Hasbro as the second-largest global toy maker. Hasbro, which reports full-year results Thursday afternoon, recently warned that 2012 revenue was projected to drop 4.7% to $4.09 billion.

Lego's strength can be attributed to a mix of licensed products tied to popular franchises, like "The Hobbit," "Star Wars" and "The Dark Knight Rises," and company-owned brands like Lego City. The company sold its first licensed line based on "Star Wars" in 1999, and sets based on popular film and television series generate buzz among fans. But internally developed brands, including Lego Friends and Ninjago, have also been popular.

Lego Friends, a new line that hit retail shelves a year ago, helped the company sell more of its building sets to girls after a few failed attempts to address that demographic. Lego's internal data showed that at the end of 2011, 91% of sets sold in the U.S. were intended for boys. Friends helped triple the number of sets Lego now sells to girls, and the line was one of the most-popular doll play sets in the critical fourth quarter.

Overall, Lego's U.S. sales last year totaled $1.32 billion, helping the company increase total toy market share in that region by 1.6 market-share points to 7.9%. Lego also grew share in the building-sets category, now commanding nearly 85% of that market in the U.S.

The strong sales are tied to the rising popularity of the construction toy category. In the U.S. last year, NPD Group reported that while overall domestic toy sales slid 0.6% to $16.5 billion, building sets--the best-performing category--notched a 20% gain.

Though Lego is already a huge player in the space, it continues to build sales growth by appealing to a wider audience than many toy makers. It can court an older demographic with some of its construction sets, like the Architecture series that began in 2008 and includes sets based on the Empire State Building, Big Ben and other famous buildings.

But Lego's success has drawn some competition. Canada-based MEGA Brands Inc. (MB.T), through a license pact with Mattel, is selling a line of Barbie construction toys. More new construction sets are hitting the market in 2013 to chase growth in a pocket of the toy industry that has been performing well in recent years.

Soren Torp Laursen, president of the company's North American division, Lego Systems, said the company expects to achieve sales growth again this year. Lego will show off a slate of new toy sets at the American International Toy Fair in New York City next week.

[Ed Mack]

Nice work LEGO...

http://www.marketwatch.com/story/legos-us-sales-soared-26-in-2012-2013-02-07

Excellent news for the secondary market and resellers out there. Even in the continued poor economic times(not including the disconnected to reality stock market), for LEGO to increase sales 26%, that is fantastic. Needless to say, I accounted for 6% of that growth...LOL. Good times in the LEGO investment world.

[pickleboy]

Almost the second largest toy company int he world!!!!! ...right behind Hasbeen...I mean bro.

[Veegs]

I didn't impact the numbers as much as Ed, but my wife would accuse me of it just the same.

[Ed Mack]

I didn't impact the numbers as much as Ed, but my wife would accuse me of it just the same.

Well, maybe I exaggerated a bit. Maybe it was 5% of the increase in sales was due to me. ;-)

[silmon]

I don't know If I'm wron seeimg You to have 3283 sets at the moment... Some basic question: 1) You rented an industrial shed for storage? 2)You asked quite a generous loan from a bank? 3) We are going to attend the LEGO sub-prime crisis?

[Ed Mack]

I don't know If I'm wron seeimg You to have 3283 sets at the moment...

Some basic question:

1) You rented an industrial shed for storage?

2)You asked quite a generous loan from a bank?

3) We are going to attend the LEGO sub-prime crisis?

It's actually more than that. I haven't added any in months. Maybe I'll update in a day or two. I store the sets in my finished basement at home and in a large finished storage room at my business. No loans. I might need an intervention. ;-)