After an already highly successful Covid-year, LEGO is also recording impressive growth figures in the first half of 2021. The toy manufacturer is rolling out a new store concept and continues to invest in digital transformation.
Strong demand
The increased demand for toys during the lockdowns already rendered LEGO record-breaking sales in 2020, but even now that the Covid measures have been eased and stores are reopening, the manufacturer sees sales increase further. In the first half of this year, sales amounted to 23 billion Danish kroner or 3.1 billion euros, an increase of no less than 46 per cent compared to the previous year. The Danish toy manufacturer is thus setting a new record.
Net profit even increased by 140 per cent to 847 million euros, despite higher costs for raw materials and transport. “As we look ahead to the second half of 2021, we continue to see strong demand for our products. Longer-term, we expect top-line growth to stabilise to more sustainable levels as people return to pre-pandemic spending patterns”, says CEO Niels B. Christiansen.
New stores
LEGO opened more than 60 new stores worldwide in the first half of the year, including 40 in China. At the end of June, the company had a total of 737 own stores, of which 291 were in China. The manufacturer opened a flagship store under a new concept in New York: that model will be rolled out to 60 locations in the second half of 2021.
E-commerce sales through own channels and those of partners grew by 50 per cent. In the coming months, LEGO will continue to invest in a multi-year, company-wide digital transformation plan involving the development of new digital platforms and products.
