Lego Star Wars toys rest on display screen inside a Toys “R” UsInc shop in Paramus, New Jersey, U.S., on Tuesday,Nov 26, 2019.
Lego sales are developing on pandemic-era development, improved by popular sets from Lego Star Wars and Lego Harry Potter.
On Wednesday, the independently held Danish toymaker stated income throughout the very first 6 months of the year leapt 17%, reaching $27 billion Danish krone, or about $3.5 billion.
Lego was amongst the toy business that saw huge gains throughout the pandemic, as customers of any ages gravitated towards its structure sets for home entertainment.
CEO Niels Christiansen promoted the business’s varied choice of toys and their appeal throughout generations for the ongoing sales rise.
“It is the broadest one we ever had,” Christiansen stated of Lego’s existing 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.”
In addition to top-selling Star Wars and Harry Potter designs, Lego has actually seen strong efficiency in its homegrown Lego Technic and Lego City.
“I think that we make sure we tap into different passion points,” Christiansen stated. “You can buy a Formula One car or a Ferrari, or you can have a Duplo set that fits in your bathtub.”
Lego’s strong incomes outcomes come in spite of a series of international headwinds consisting of war in Ukraine, shop and factory shutdowns in China due to the Covid-19 pandemic and increasing inflation related to expenses of basic materials, energy and freight.
Christiansen stated strong sales have actually permitted the business to come out ahead of these monetary problems. Net earnings in between January and June 30 reached $6.2 billion Danish krone, or about $802 million, basically in line with year-earlier levels. During the exact same duration in 2015, Lego produced net earnings of $6.3 billion Danish krone, or about $812 million.
The business likewise has actually been profiting of opening shops in brand-new markets, especially inChina During the very first half of the year, the business opened 66 stores worldwide, consisting of 46 because area.
“We’re making quite significant investments in our factory in China, as well,” Christiansen stated. “Right now, we’re expanding molding and packing and warehousing capacity there to also sustain growth coming forward.”