Toymaker Lego reported its first sales fall in 13 years Tuesday, with CEO Niels B. Christiansen saying there would be no "quick-fix" for the company.
Lego explained that it had too many bricks in 2016, meaning that 2017 was spent selling off warehouse supplies cheaply to make room for new stock. This accentuated the 8 percent decline in revenues last year, which fell to 35 billion Danish crowns ($5.8 billion) from 37.9 billion in 2016. Operating profit was down 17 percent at 10.4 billion Danish crowns.
Christiansen said in an online statement that the company was "not satisfied" with its results, announced Tuesday.
"A big part of that explanation is actually around fluctuations in inventories among a lot of our partners in their stores … in '16 we sold more to our partners than actually was sold out of their stores. Now in '17, we actually cleaned that up and brought inventories down to what we believe is a much more healthy level," he said at Lego's results presentation in Billund, Denmark.
Christiansen, who took over as CEO from Bali Padda in October 2017, added that holiday sales went well as Lego's toys often featured at the top of children's wish lists for Christmas.