Denmark-based toy maker Lego said on Wednesday that sales of its colorful plastic bricks outpaced the overall toy market in the first half of this year, helped by strong demand in Europe and North America.
Lego's sales surge contrasts with a sluggish global toy market and weak sales at rivals such as Barbie doll maker Mattel (MAT) and Hasbro (HAS), the company behind My Little Pony.
Family-owned Lego said sales rose 13% to 31 billion Danish kroner ($4.65 billion) in the January-June period. By comparison, Lego's sales for the first half of the year were up 1% from last year and are up 17% in 2022 compared to the previous year.
“We are performing significantly better than the overall toy market and are gaining market share at a fairly rapid pace,” Chief Executive Niels Christiansen told Reuters.
He said the global toy market remained stagnant this year after sales fell 7 percent last year.
Lego's operating profit rose 26 percent to 8.1 billion kroner.
Following the strong start to the year, Christiansen now expects sales to grow in the double digits in 2024, compared to a previous outlook of single digit growth.
The company plans to open about 100 stores this year, slightly fewer than usual, bringing the total number of stores to more than 1,100.
“We are now opening slightly fewer stores in China because we are seeing consumers there holding back a little bit,” Christiansen said.
The company instead shifted its focus to Europe and North America, where demand is strong.
Lego Icon, which includes models of the Eiffel Tower and the Titanic, was one of the best-selling themes along with City, Technic and Star Wars. The company released about 300 sets in the first half of the year.
(1 dollar = 6.6712 Danish kroner)
(Reporting by Jacob Gronholt Pedersen and Rod Nickel Editing)
