LEGO Systems Built Tenth Consecutive Year of Growth in U.S. Toy

LEGO Systems Built Tenth Consecutive Year of Growth in U.S. Toy Market

-World-Famous Construction Toy Maker Saw Increased Demand in the U.S. in 2014-

NEW YORK, Feb. 12, 2015 — (PRNewswire) — AMERICAN INTERNATIONAL TOY FAIR – LEGO Systems, Inc., the North American division of the world-renowned construction toy brand, achieved U.S. consumer sales growth for the tenth consecutive year in 2014. The company increased its overall U.S. toy market share to end 2014 in its strongest position ever in U.S. toys.

LEGO Systems' 2014 U.S. Year-End Highlights (Source: The NPD Group/Retail Tracking Service)

LEGO® U.S. consumer sales grew +14% over 2013
LEGO share of total U.S. toy market increased by almost a full point to 8.5%
Increased LEGO sales in 4+ segment of U.S. Building Sets by +16%
Grew LEGO sales in Junior segment of U.S. Building Sets +5% over 2013
Continued robust double-digit growth in U.S. Girls Building Sets, with LEGO sales up +28% over 2013

As a privately-held company, LEGO Systems does not disclose internal market performance data and offers third-party data for directional purposes.

"We are both thrilled and humbled to have recorded our tenth consecutive year of growth for the LEGO business in the U.S., especially considering the relative instability of the economy during the last decade and the vast amount of opportunities from which children can now choose to spend their time," said Søren Torp Laursen, president, LEGO Systems. "As a classic, tactile creative play experience, we're energized by the opportunities to keep building our relationships with children and their families while also exploring the ways in which to enhance the LEGO experience in order to invite more children into the LEGO brand and to keep them building for longer."

Balanced Product Portfolio Drove Growth
LEGO demand peaked across all ages and price ranges in the U.S. in 2014. LEGO CITY, LEGO Star Wars™, LEGO Friends, LEGO Super Heroes and THE LEGO MOVIE™ ranked among the top five LEGO properties of the year in the U.S. LEGO Friends and LEGO brand Disney Princess™ continued to drive growth in Girls Building Sets by expanding the company's active user base in the U.S., with year-end sales +28% higher than 2013[1]. A broad and versatile LEGO DUPLO® collection drove recruitment of new builders to the brand to grow the company's position in Junior Building Sets by +5%[2]. Sales of LEGO Creator 3-in-1 models increased +35%[3], signaling continued demand for classic LEGO building sets.

THE LEGO MOVIE premiere in February 2014 ignited brand affinity and engagement with audiences of all ages. While the collection of LEGO sets inspired by the film performed well, the movie served as an anthem for all LEGO building, inspiring families to build across the entire LEGO portfolio.

Will Growth Continue in 2015?
Achieving growth amidst all of the competitive pressure that toys face is difficult; doing so year-on-year over a sustained period of time is rare.

"It's almost unheard of for any company to consistently grow for 10 years, but we have been very fortunate to deliver strong performance in the U.S. market by prioritizing the relationship we have with children, their families, our retail partners and our suppliers in order to keep demand for LEGO products strong," Laursen said. "In a trend driven industry facing a dynamic market and increasingly sophisticated consumer, we are thrilled and humbled to be an evergreen classic that continues to grow."

Among the reasons Laursen sees potential for continued interest in LEGO play is a constant reinvention of the LEGO brand that, in 2015, includes a strong portfolio of classic, proven themes and new offerings to engage even more children in the joy of building.

The youngest builders will find iconic themes such as Farm and Airport in the LEGO DUPLO® collection, as well as new properties such as Disney's Sofia the First™ and Doc McStuffins™. LEGO Juniors, established in 2014, delivers more ways for children to ease into building with smaller bricks. New LEGO Classic offers open-ended creative building. Proven themes such as LEGO City, LEGO Friends, LEGO Ninjago, LEGO Super Heroes and LEGO Star Wars all launch exciting new ways to build, while proven legends return in LEGO Pirates and BIONICLE®. New themes, such as LEGO Elves, LEGO Scooby Doo™, LEGO Jurassic World™ and LEGO Minecraft have potential to bring even more children into to LEGO experience.

"The LEGO idea is a system of creative play where everything fits together, so we're able to reinvent the brand every year to keep it fresh and relevant for children. At the same time, we are a single brand company utilizing one play material, so everything we create reinforces our entire brand," Laursen said. "If we stay focused on what the brand means to children – both physically and digitally- and continue to serve their needs, our business potential may be as limitless as our play material."

Note to editors: The NPD Group US Toys Retail Tracking (POS) data is an un-projected national service, covering 80% of toy retailers in its panel. It also does not include a manufacturers' direct sales, therefore should be considered directional.

About LEGO Systems, Inc.
LEGO Systems, Inc. is the North American division of The LEGO Group, a privately-held, family-owned company based in Billund, Denmark, and 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 following 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

[1] The NPD Group / US Toys Retail Tracking (POS) Service
[2] The NPD Group / US Toys Retail Tracking (POS) Service
[3] The NPD Group / US Toys Retail Tracking (POS) Service

MEDIA CONTACT
LEGO Systems, Inc., Michael McNally
860-830-5885 / Email Contact

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SOURCE LEGO Systems, Inc.

Contact:

LEGO Systems, Inc.
Web: http://www.lego.com