Lego’s sales fell for the first time in 13 years after the toymaker admitted on Tuesday that it made more toy bricks than it was able to sell last year.
The Danish toymaker blamed tough trading conditions in Europe and North America for an 8 per cent drop in sales to 35bn Danish kroner (£4.2bn) in 2017, compared to 37.9bn Danish kroner in 2016.
But the company, which is privately-owned, enjoyed double-digit sales growth in China and said that it was extend its offering of online products.
It has already teamed up with Chinese internet giant Tencent to develop social networks aimed at Chinese children.
Lego chief executive Niels Christiansen said there was “no quick fix” to the company’s overall sales decline and that it would “take some time” for the business to grow its revenue over the long term.
Lego slashed 1,400 jobs in September in a revamp which at the time was described as a “reset-button for the entire group” by executive chairman Jorgen Vig Knudstorp.
The toymaker also said that it could not promise a return to growth in the next two years, despite lucrative franchises with brands such as Harry Potter and Minecraft.
