Lego Soars to New Heights with Star Wars and Harry Potter

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It’s no secret that children everywhere love Legos—the tiny, colorful plastic bricks have captivated kids and adults alike since their invention in 1932 by a Danish toy-maker. Now, the famous building blocks are more popular than ever, thanks to blockbuster movie franchises like Star Wars and Harry Potter and their spinoff Lego sets. While production of Lego sets has been steadily climbing in recent years, the company’s latest earnings report shows that sales are surging at an unprecedented rate, with 17% year-over-year growth in the first half of 2022 alone.

With help from well-liked kits like Lego Star Wars and Lego Harry Potter, Lego sales are expanding on pandemic-era success.

The privately held Danish toy manufacturer announced on Wednesday that sales for the first half of the year increased 17% to $27 billion Danish krone, or around $3.5 billion.

Lego was one of the toy companies that experienced enormous growth during the epidemic as people of all ages turned to its construction toys for entertainment.

The company’s CEO, Niels Christiansen, credited the company’s wide range of toys and their appeal to all age groups for the ongoing sales boom.

Lego’s current portfolio, according to Christiansen, is the largest one the company has ever had. “The portfolio is really solid across the board, whether it’s preschool, toddlers, girls and boys, teenagers, or adults.”

Along with its best-selling Star Wars and Harry Potter models, Lego has seen success with its in-house creations, Lego Technic and Lego City.

Christiansen argued that it was important to tap into many passion spots. “You can have a Duplo set that fits in your bathtub, or you can purchase a Formula One car or a Ferrari.”

The conflict in Ukraine, closures of stores and factories owing to the Covid-19 outbreak in China, and rising inflation due to the cost of raw materials, electricity, and freight all contributed to Lego’s outstanding financial performance.

According to Christiansen, the firm has been able to overcome these financial challenges thanks to high sales. Between January and June 30, net income was $6.2 billion Danish krone, or approximately $802 million, about maintaining levels from the prior year. Lego had a net profit of $6.3 billion Danish kroner, or roughly $812 million, over the same time period previous year.

The business has also benefited from expanding locations in new markets, notably China. The business launched 66 stores globally in the first half of the year, including 46 in that area.

Christiansen added, “We’re also investing quite a bit in our facility in China. “Right now, we’re increasing that location’s capability for moulding, packaging, and storage to support future expansion as well.”

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