LEGO has reported a 13% jump in revenues for H1 2024 despite inflation battering the sales numbers of other firms in the toy industry.
LEGO’s Revenue Is Up 13% Despite Toy Industry Downswing
The company announced on Wednesday 28 August 2024 that its January through June revenue came in at approximately $4.65bn, or 31bn DKK. In an interview, the Danish toymaker’s chief executive, Niels Christiansen, told CNBC that the company is experiencing growth across its portfolio. He highlighted the contributions of LEGO Icons, LEGO Creator and the Fortnite partnership with Epic Games.
In 2023, the firm noticed that customers were buying more affordable sets, while sales volumes were being maintained. Christiansen indicated that this year’s volumes so far are up from 2023. He said:
To the extent they traded down last year, they’re not trading further down. So that has stabilised. And we see almost all of the growth is actually growth in volume.
Publicly listed competitor Mattel (MAT) experienced a 1% drop in net sales for H1 2024. Hasbro, Inc. (HAS), another stock-listed toy and gaming outfit, saw a revenue drop of 21% over the same period.
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According to a CNBC report, Mattel is battling to replicate its 2023 Barbie sales, and Hasbro is still buckling under the divestment of eOne. Analysts believe that LEGO’s appeal to both children and adults is partly fuelling its continued growth.
The company’s sales throughout the US and Europe are consistently strong. However, Christiansen, indicated stagnant sales movements in China. LEGO opened 40 stores in Q1 2024 and 20 of these are based in China.
