Lego has reported a significant rise in sales for the first half of the year, outpacing the overall toy market, thanks to strong demand in Europe and North America. The Denmark-based toy company saw its sales climb 13% to 31 billion Danish crowns ($4.65 billion) from January to June, a stark contrast to the stagnation in the global toy market and the sluggish performance of rivals like Mattel and Hasbro.
"We have performed significantly better than the overall toy market and have grabbed market share at a fairly high pace," said CEO Niels Christiansen in a statement to Reuters. While the global toy market struggled, experiencing a 7% decline in sales last year, Lego continued its upward trajectory with a 26% increase in operating profit, reaching 8.1 billion crowns.
This impressive growth has led Christiansen to revise the company’s expectations for 2024, now anticipating double-digit sales growth instead of the previously forecasted single-digit increase. A key factor in this success has been Lego’s strategic focus on expanding in Europe and North America, regions where consumer demand remains robust.
Lego’s product lineup also played a significant role in driving sales, with popular themes like Lego Icons—which features intricate models such as the Eiffel Tower and Titanic—along with City, Technic, and Star Wars, performing exceptionally well. The company launched around 300 new sets in the first half of the year.
However, Lego is adjusting its strategy in China, where consumer spending has slowed. The company plans to open around 100 new stores this year, fewer than in previous years, bringing the total to over 1,100 stores worldwide. "We are opening slightly fewer stores in China right now because we see that consumers there are holding back a bit," Christiansen explained, underscoring the company’s focus on regions with stronger demand.
Overall, Lego’s targeted expansion in Europe and North America, coupled with its diverse and appealing product offerings, has positioned the company for continued growth, even as the global toy market faces challenges.
(Source:www.invesitng.com)
"We have performed significantly better than the overall toy market and have grabbed market share at a fairly high pace," said CEO Niels Christiansen in a statement to Reuters. While the global toy market struggled, experiencing a 7% decline in sales last year, Lego continued its upward trajectory with a 26% increase in operating profit, reaching 8.1 billion crowns.
This impressive growth has led Christiansen to revise the company’s expectations for 2024, now anticipating double-digit sales growth instead of the previously forecasted single-digit increase. A key factor in this success has been Lego’s strategic focus on expanding in Europe and North America, regions where consumer demand remains robust.
Lego’s product lineup also played a significant role in driving sales, with popular themes like Lego Icons—which features intricate models such as the Eiffel Tower and Titanic—along with City, Technic, and Star Wars, performing exceptionally well. The company launched around 300 new sets in the first half of the year.
However, Lego is adjusting its strategy in China, where consumer spending has slowed. The company plans to open around 100 new stores this year, fewer than in previous years, bringing the total to over 1,100 stores worldwide. "We are opening slightly fewer stores in China right now because we see that consumers there are holding back a bit," Christiansen explained, underscoring the company’s focus on regions with stronger demand.
Overall, Lego’s targeted expansion in Europe and North America, coupled with its diverse and appealing product offerings, has positioned the company for continued growth, even as the global toy market faces challenges.
(Source:www.invesitng.com)