Lego admits it made too many bricks

Danish toymaker Lego has reported its first sales decline in 13 years

An excessive number of Lego blocks is an issue numerous guardians will identify with, yet now the toy firm itself has let it be known has made too much.

The organization said deals and benefits had fallen without precedent for a long time, accusing the frail execution for selling off abundance stock economically.

A Lego representative said it had "excessively" stock in stockrooms and shops.

"There wasn't sufficient space to get 2017 toys into the stores, and the toy exchange is driven by novelty," she included.

The Danish toymaker said managing the stock issue, and in addition a drop in deals in Europe and North America, had dragged down its execution a year ago.

Lego Gathering CEO Niels Christiansen said there was "no handy solution" and it would take the firm "some time" to develop long haul.

The powerless execution comes after Lego cut 1,400 occupations worldwide in September, saying its business required a "reset".

Income for 2017 dropped by 8% to 35bn Danish kroner (£4.2bn; $5.8bn), contrasted with 37.9bn kroner in 2016.

Pre-impose benefits slid 18% to 10.4bn kroner in 2017.

"Amid the year, incomes declined, however shopper deals - or deals in stores - stayed level. This demonstrates purchasers (kids and their folks) are proceeding to purchase from retailers," said Lego's representative.

Lego in numbers

75 billion blocks are sold every year in more than 140 nations

915,103,765 - the quantity of approaches to join six two-by-four Lego blocks of a similar shading

700 million Lego tires are created every year

19,000 workers from more than 80 nations are utilized by Lego

3,700 - the quantity of various sorts of Lego blocks

130 Lego mark retail locations around the globe

0 - Lego says there have been no item reviews since 2009

"2017 was a testing year and general we are not happy with the monetary outcomes," Mr Christiansen said.

Be that as it may, he said the association's execution had enhanced towards the finish of the year, with deals developing in seven of its 12 biggest markets in December.

The organization has been expanding deals in new markets, especially in Asia.

Lego said that it saw "solid potential" in its business in China, where deals delighted in twofold digit development a year ago.

"Notwithstanding, to decrease retail inventories, we sent less to our retailers than what the customers are purchasing."

"We began 2018 fit as a fiddle and amid the coming year we will balance out the business by proceeding to put resources into extraordinary items, successful worldwide advertising and enhanced execution," said Mr Christiansen.

In September, Lego said its half-year comes about had endured on the grounds that it had extended itself too thin by enhancing into items that were not toys, for example, the Lego motion pictures.

Lego executive Jorgen Knudstorp said at the time that adding multifaceted nature to the organization had made it harder for the toymaker to become further.

He said that the firm had squeezed "the reset catch" for the gathering with the point of building "a littler and less unpredictable association".