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September 29, 2022: -Lego sales are building on the development of the pandemic era, inspired by popular sets from Lego Star Wars and Lego Harry Potter.
On Wednesday, the personally held Danish toymaker said revenue during the first six months of the year surged 17%, which hit 27 billion Danish kroner, or almost $3.5 billion.
Lego stood among the toy companies that saw massive gains during the pandemic, as consumers of all ages gravitated toward its construction sets for joy.
CEO Niels Christiansen touted the company’s diverse selection of toys and their appeal all over generations for the continued sales surge.
“It is the broadest one we ever had,” Christiansen said of Lego’s current portfolio. “It’s preschool; it’s kids; it’s girls and boys; it’s teens; it’s adults. It’s actually across the board that the portfolio is super strong.”
Compared to top-selling Star Wars and Harry Potter models, Lego has seen strong performance in its homegrown Lego Technic and Lego City.
“I think that we make sure we tap into different passion points,” Christiansen said. “You can buy a Formula One car or a Ferrari, or you can have a Duplo set that fits in your bathtub,” Christiansen added.
Lego’s strong earnings results arrive despite a series of global headwinds, which include the war in Ukraine, store and factory shutdowns in China because of the Covid-19 pandemic, and rising inflation associated with costs of raw materials, animation, and freight.
Christiansen said strong sales have allowed the company to come out ahead of these financial difficulties. Net profit between January and June 30 reached 6.2 billion Danish krone, or about $802 million, essentially in line with year-earlier levels. Last year, Lego generated a net profit of 6.3 billion Danish krone, or about $812 million during the previous year’s period.
The firm also has been reaping the benefits of opening stores in new markets, especially in China. During the year’s first half, the company opened 66 shops worldwide, including 46 in that region.
“We’re also making significant investments in our factory in China,” Christiansen said. “Right now, we’re expanding molding and packing and warehousing capacity to sustain growth reaching forward.”
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