The Danish toymaker’s annual revenue dropped by *% in 2017, ending its 13 years of rapid growth.
The company said dealing with the sock issue had dragged down its performance last year as well as weak sales in Europe and North America.
Profits dropped 17% in 2017 and CEO Niels Christiansen said he would work to stabilize the business in the coming year.
In September the company cut 1,400 jobs worldwide, about 8% of its workforce.
Toy analyst Matthew Hudak said, “households can have too many Lego products and not want more each year.”
Lego said that it saw “strong potential” in its business in China, where sales enjoyed double digit growth last year.