The Lego website is a mess, which is no surprise given the brand’s recent run of bad luck.
While the company is no stranger to trouble, this latest bout of site issues seems to have been especially painful.
Lego’s Lego store is one of the most popular sites for buying Lego toys, but this week the company revealed that the site was down.
While there were some users who were able to get the site back online on Monday, the problem has been exacerbated by the fact that Lego is in the midst of a $1 billion restructuring and will need to raise another $1.2 billion to continue operating.
The company’s latest financial results, which were released Tuesday, show that Lego’s revenue fell short of analysts’ expectations, and the company will have to make significant changes in order to stay afloat.
According to The Wall Street Journal, Lego’s sales fell 12% in the third quarter of this year, and its earnings dipped 9% as the company’s revenue dropped by nearly $1 million, or 28% year-over-year.
In the first half of this fiscal year, Lego posted a net loss of $2.3 million, according to the Journal.
This week, Lego CEO Tom Stoddart said that the company was “on a collision course” with the Wall Street market, which was expecting revenue of $4.2 million in the current fiscal year.
The Wall St Journal reports that “Lego had to slash more than $1bn in revenue and earnings, including a cut of more than 30% in earnings per share, in order for the company to stay alive.”
Lego’s stock was down 4.7% in early trading on Tuesday, after falling by nearly 9% the previous day.
The site is also struggling to attract new customers.
According To the WSJ, the number of visitors to Lego’s website dropped by more than 75% in its third quarter.
This is despite Lego’s attempts to increase its marketing spending and expand the number and types of products it offers.
While Lego’s troubles could have a negative impact on the company in the future, the company says it is prepared to recover and that it will work to bring its revenue back up.
“We have to go through this phase,” Stoddard told the Journal, adding that the brand will be able to “go through a process of self-reflection.”
“I think that we will find ways to grow the brand and that is our mission,” Stodard said.
“Legos mission is to create an incredible product for everyone, not just Lego.”
While it’s difficult to predict exactly what will happen to Lego once its restructuring begins, it seems unlikely that the online-only brand will see a dramatic uptick in sales.
However, the brand is looking to increase revenue by bringing more products to market, and there is some good news for the online business.
The Journal reports: “Legodys chief executive, Tom Stodarczyk, has been touting the success of the online shop as the future of Lego, a strategy that is paying off in the company and across the world.
The online shop has attracted over 70 million visitors to its site since its launch last September, according an analysis by the research firm Technomic.
Lego is also the largest seller of Lego bricks worldwide, and Stodarzyk has made his mark on the brick market by building a brick empire around the Lego brand.”
While there is a long road ahead for Lego, the online store has already become one of its biggest revenue generators.
In fact, the Lego store has become so popular that it has become a hub for other Lego-related businesses, including online stores for Star Wars, Star Trek and other Star Wars merchandise.