LEGO Systems Outpaces U.S. Toy Industry and Posts 38% Consumer Sales Growth in 2008
- World's premier construction toy brand achieves record share gains in U.S. construction toy category and overall toy market
NEW YORK, Feb. 13, 2009 -- American International Toy Fair -- LEGO Systems, Inc., the North American division of the world's leading construction toy manufacturer, today announced record-breaking U.S. consumer sales growth, overall toy industry share points and construction toy category share gained in 2008. The performance is attributed to a well-balanced product portfolio, healthy retail partnerships and the brand's heritage and reputation for quality play materials and long-lasting play value.
Year-end Highlights
- Fourth consecutive year of consumer sales growth outpaces the U.S. toy industry and most other manufacturers, with a +38% gain in consumer sales over 2007(1)
- Reached record high share of 3% of the overall U.S. toy industry's total of roughly $21.6B, moving up in manufacturer ranking to #5(2)
- The brand's #1 rank in construction toys was further bolstered with category share increasing +7 points from 66% in 2007 to 73% in 2008(3), the highest level since 1992
- Sustained growth in 4th quarter 2008, ending the year with record low inventories
- Recorded double-digit consumer sales growth in every major toy retailer
"2008 was an incredibly exciting year for the LEGO brand in the U.S.," said Soren Torp Laursen, president of LEGO Systems. "We achieved unprecedented growth and set company records in the face of negative economic trends and a downturn in consumer spending. Our strongest year among U.S. consumers kicked off with the 50th anniversary of the LEGO brick and developed in a market where economic uncertainty squeezed holiday sales, proving that our classic play pattern and brand value really are timeless and resilient."
A strong product portfolio balanced between homegrown classics and licensed lines drove U.S. sales of LEGO® products in 2008 to be six times larger than the next largest construction toy brand(4).
Among product line highlights:
- LEGO STAR WARS™ topped the company's U.S. sales chart, reaching record sales levels growing +78% vs. 2007
- BIONICLE® finished in the top three LEGO lines of the year, recording +5% sales growth
- LEGO CITY generated an exceptional +64% U.S. sales growth over 2007
- LEGO CASTLE recorded +45% growth in sales
- Open-ended LEGO buckets and tubs contributed +61% U.S. sales growth over 2007
- LEGO INDIANA JONES propelled the U.S. business, selling double its original plan
"Generally speaking, the toy industry was not impervious to the weak economic environment of holiday 2008," said Gerrick Johnson, analyst at BMO Capital Markets. "We saw that parents focused their spending on toys with strong play value, carefully choosing products that they knew would offer long-lasting fun for their kids. We think that LEGO certainly fared well in that consumer exercise."
"2009 begins with incredible momentum, aided by broad retail support, increased shelf-space and strong, steady consumer demand," Laursen said. "While the economic conditions remain challenging, we remain confident that we will be able to deliver the growth we have planned for 2009."
LEGO Systems, Inc. is the North American division of The LEGO Group, a privately-held, family-owned company based in Billund, Denmark, one of the world's leading manufacturers of creatively educational play materials for children. The company is committed to the development of children's creative and imaginative abilities, and its employees are guided by the motto adopted in the 1930s by founder Ole Kirk Christiansen: "Only the best is good enough." Visit the virtual LEGO world at www.LEGO.com
LEGO and BIONICLE are trademarks of the LEGO Group. © 2009 The LEGO Group.
© 2009 Lucasfilm Ltd. & TM. All rights reserved. Used under authorization.
(1) Source: The NPD Group
(2) Source: The NPD Group
(3) Source: The NPD Group
(4) Source: The NPD Group
