The rise and fall... and rise of Lego

The toy company losing $1M per day and months from bankruptcy — now the biggest toy maker on Earth.

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By The Numbers

$10B+

revenue today

$1M

daily losses at crisis

30%

of sales from adults

What They Nailed Early

Built the most iconic construction toy system in history. Created a product that combined creativity with precision engineering. The brick design became universally recognized and beloved across generations.

What Changed

LEGO diversified wildly into theme parks, cartoons, and everything beyond core toys. Losses hit $1M daily. New CEO Jørgen Vig Knudstorp refocused the company, then made a genius bet: target 'kidults' — millennials with money buying nostalgia — and sign major brand deals with Star Wars, Harry Potter, and Marvel.

Where it Landed

Now the world's biggest toy company at $10B+ in sales. Thirty percent of revenue comes from adults buying for themselves. The kidult strategy turned former kids into high-spending customers.

The Principles

Adults with nostalgia spend more than kids. LEGO discovered millennials would pay $900 for a Millennium Falcon set to relive childhood.

Focus beats diversification in a turnaround. Knudstorp killed theme parks and cartoons to double down on making great brick sets.

Brand partnerships create defensible scale. Only LEGO has the size to license Star Wars, Marvel, and Harry Potter simultaneously.

Builder's Takeaway

If you're turning around a struggling brand, remember:

•

Cut everything that isn't core — diversification during crisis is death

•

Find the customer with money (adults beat kids every time)

•

Nostalgia is a business model when your brand spans generations

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