Lego Pursues Digital Initiatives to Keep Its Sales Growing

The Lego Group reported strong sales in the first half of the year and announced several initiatives — many of them digital — that aim to build upon that success.

Driven by products that appeal to a wide range of consumers, the toy maker’s consumer sales grew 13% and its revenue grew 17% during the six months ending June 30, the Lego Group said Tuesday (Sept. 27) in a press release.

“Despite global uncertainties, we continued to deliver higher consumer sales and double-digit top-line growth driven by demand for our strong portfolio and execution by our amazing team,” the Lego Group CEO Niels B. Christiansen said in the release.

Other toy makers have reported growth as well. In its most recent quarterly earnings calls, Hasbro said its second-quarter revenue was up 1%, while Mattel announced its second-quarter sales were up 20%.

Read more: Hasbro Goes Full ‘G.I. Joe’ in Q2 Earnings as Toymaker Evolves to Fight its Own Battles

Mattel Reports $1.2B in Sales, Surpassing Q1 Record

The Lego Group attributed its growth to a product portfolio that is larger than ever and appeals to a wide range of interests, ages and skill levels.

During the first half of the year, the company pursued several digital initiatives, including strengthening its eCommerce capabilities, opening a digital office in Copenhagen, growing its global digital team by 40% and announcing a partnership with Epic Games to create “fun, safe digital experiences for kids in the metaverse,” the release stated.

See more: Lego, Epic Games Building Metaverse For Kids

The Lego Group also added 66 new Lego stores, bringing its total to 833 worldwide.

The company said in the release its strong revenue growth also enabled it to speed up its efforts to expand manufacturing capacity and build its inventory levels. It plans to open two new factories, with one in Virginia and the other in Vietnam.

Looking ahead, Christiansen said the Lego Group expects demand to remain strong through the second half of 2022 and then normalize in the long term.

“We will also continue to reinvest in our business and accelerate initiatives such as product innovation, digitalization, production capacity, our retail network and sustainability to maintain momentum and deliver sustainable growth in the long term,” Christiansen said in the release.

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