LEGO is experiencing whiplash. Couldn’t keep up with Covid demand and now people cutting discretionary spending to pay for basics.
So, what do you do if you are LEGO and there is inflation all around you as well? If you don’t raise prices, your premium status starts to drop. Something you don’t want to have to recoup in the long haul. But if you do raise prices, you’ll lose sales in the short term and all that expensive factory capacity you just bought sits idle for awhile.
Tough call.
Good time to be an investor though — buy right after the Covid newbies are still licking their wounds and vowing never to invest in plastic bricks again — buy right when people don’t have the money at the moment to get the sets they may normally buy before they retire — buy when the retailers are pressured to discount the sets to move to anyone — and then hold a few years for those factors to reverse themselves and demand/supply conveniently flips back in our favor.
phase 3 — PROFITS!!!