While the rest of the toy industry struggles to break even, Lego continues to break sales records.
The Danish toy block maker, which has a passionate following among adults and children, said on Wednesday that sales and operating profit for the first half of 2024 had reached record highs.
Revenue rose 13% to $4.6 billion as customers snapped up pop culture sets ranging from $20 to more than $500 each, including Star Wars, Harry Potter, Fortnite and Peppa Pig.
“Our portfolio is relevant across all age groups and interests, which is driving strong demand across markets,” Lego CEO Niels Christiansen said in a statement.
Lego's strength comes as rivals Mattel and Hasbro reported sales declines of 1% and 21%, respectively, during the same period.
The privately held company is benefiting from surging demand from adult customers who are willing to spend hundreds of dollars on elaborate sets.
According to Lego's website, the company has an “adults welcome” section that offers a $150 Jaws set, which is currently on backorder, and a $680 Titanic set, which is also on backorder.
According to data from Circana, for the first time this year, demand for toys from preschoolers outpaced that of toy lovers aged 18 and over, with sales reaching $1.5 billion from January to April.
According to Circana, adult toy collectors are the “most important age group” for the toy industry.
Last year, rising inflation squeezed consumer budgets, causing the industry's sales to fall 8%, and the 2023 holiday season was the weakest in five years as shoppers turned to bargains.
While sales have improved this year, they were still down 1% through April compared with the same period last year, according to consumer research firm Circana.
Christiansen told CNBC that Lego customers also saved up and bought lower-priced sets last year, but added that they “are not going to get any cheaper.”
“So, we've stabilized. And we think almost all of the growth is actually volume growth,” he said.
Lego said sales in the United States and Europe were strong, but sales in China were flat.
Net income increased 16% to $570.7 million, while operating income increased 26% to $770.5 million.
