Lego Star Wars toys are displayed at a Toys “R” Us Inc. store in Paramus, New Jersey, U.S. on Tuesday, November 26, 2019.
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Lego sales are building on pandemic-era growth, boosted by popular Lego Star Wars and Lego Harry Potter sets.
On Wednesday, the privately owned Danish toymaker said its revenue in the first six months of the year jumped 17% to 27 billion Danish kroner, or about $3.5 billion.
Lego was among the toy companies that saw massive gains during the pandemic, as consumers of all ages turned to its building sets for entertainment.
CEO Niels Christiansen touted the company’s diverse selection of toys and their appeal across generations for the continued increase in sales.
“It’s the largest we’ve 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 at all levels that the portfolio is super strong. “
In addition to the best-selling Star Wars and Harry Potter models, Lego saw strong performances in its own Lego Technic and Lego City.
“I think we make sure we tap into different points of passion,” Christiansen said. “You can buy a Formula 1 car or a Ferrari, or you can have a Duplo set that fits in your bathtub.”
Lego’s strong results come despite a series of global headwinds, including war in Ukraine, store and factory closures in China due to the Covid-19 pandemic and rising inflation associated with the cost of raw materials, energy and freight.
Christiansen said strong sales helped the company out of these financial difficulties. Net profit between January and June 30 reached 6.2 billion Danish kroner, or about $802 million, essentially in line with the previous year’s levels. In the same period last year, Lego generated a net profit of 6.3 billion Danish kroner, or about $812 million.
The company has also reaped the rewards of opening stores in new markets, notably in China. During the first half, the company opened 66 stores worldwide, including 46 in this region.
“We’re also making quite a significant investment in our factory in China,” Christiansen said. “Right now, we are increasing molding, packaging and warehousing capacity there to also support future growth.”