Colosseum kits and plastic flowers help Lego’s earnings double By Reuters
By Nikolaj Skydsgaard
COPENHAGEN (Reuters) – Toymaker Lego doubled its earnings in the first six months of the year as customers flocked to its reopened stores to buy Star Wars building sets and flower bouquets made from its colourful plastic bricks.
Although parts of global retail are still struggling from the pandemic, and the related supply chain issues that accompanied it, Lego’s family-owned business stated that its physical stores will be able to continue to draw new customers.
Niels Christiansen said, “If anybody doubted that stores would still have relevance in the face of COVID-19,” Reuters Chief Executive Niels Christianen stated.
Lego claimed it outperformed the toy market in every major market during the first six month of 2021, as its production was not interrupted by COVID-19 restrictions. Most of the physical stores were reopened.
Lego, based in Billund in Denmark, expects to open at least 174 stores this year around the globe, totaling 851 shops. Lego had 134 brand new locations last year. It opened 60 outlets in the first half this year.
The most popular building sets were Lego Star Wars, and the Lego Creator Expert sets. These sets include floral bouquets as well as a model for Rome’s Colosseum. These sets are very popular with adults who have to stay at home for lockdown.
A new Lego flagship store was opened in Manhattan in June. This allows customers to interact both with Lego products and create a Lego model of their face.
This year, the new format store will be available in around 60 locations.
Christiansen stated that it’s not about selling products but more about showing consumers the whole Lego Universe.
Lego saw a more than two-fold increase in operating profits to eight billion Danish crowns ($1.26billion) this year despite having to face rising freight and material costs.
Lego reported that revenue increased 46% to 23 Billion Crowns, and online sales grew by 50% across all platforms in comparison to last year. The figure of online sales and their percentage in total sales was not provided.
($1 = 6.3437 Danish crowns)
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