Lego dominates the toy market with strong sales in Europe and North America, according to Reuters
Written by Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) – Lego sales of its colorful plastic bricks outpaced the toy market in the first half of the year, driven by strong demand in Europe and North America, the Denmark-based toy maker said on Wednesday.
The increase in Lego sales comes against a sluggish global toy market and strong sales at rivals such as Barbie-maker Mattel (NASDAQ: ) and Hasbro (NASDAQ: ), the company behind My Little Pony.
Family-owned Lego said sales from January to June rose 13% to 31 billion Danish kroner ($4.65 billion). In comparison, Lego increased first-half sales by 1% last year and 17% in 2022, year-on-year.
“We have outperformed the overall toy market and gained market share at a faster pace,” CEO Niels Christiansen told Reuters.
The global toy market has stagnated this year following a 7% drop in sales last year, he said.
Lego's operating profit increased by 26% to 8.1 billion.
Following a strong start to the year, Christiansen now expects double-digit sales growth in 2024, compared to previous guidance for single-digit growth.
The company plans to open about 100 stores this year, slightly fewer than in previous years, bringing the total number of stores to more than 1,100.
“We are opening a few stores in China right now because we can see that the consumers there are holding back,” said Christiansen.
Instead, the company has shifted its focus to Europe and North America, where it sees strong demand.
Lego Icons, which includes models of the Eiffel Tower and Titanic, was among the top-performing themes along with City, Technic and Star Wars. The company launched around 300 sets in the first quarter.
($1 = 6.6712 Danish crowns)
