Icons Tiny Plants by Lego.
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Flowers, succulents and Formula One race automobiles helped gas a 12% revenue bump for Lego throughout the first half of the 12 months.
The firm reported a record 34.6 billion Danish kroner, or $5.4 billion, in revenue as a part of its biannual earnings report on Wednesday. Operating revenue rose 10% 12 months over 12 months to 9 billion Danish kroner, or $1.4 billion, the corporate mentioned.
“It’s the best first half ever,” Lego CEO Niels Christiansen instructed CNBC. “It’s a record on revenue, a record on operating profit, it’s a record on net profit. … So, we are very happy.”
The brick maker launched 314 new units throughout the first six months of the 12 months, one other record excessive. Lego has steadily added new product to its portfolio, branching out into dwelling decor with wall artwork units. It has additionally added new license companions and launched units tied to animated youngsters’s program “Bluey” and fan-favorite anime “One Piece.”
Up subsequent is a multiyear partnership with Pokemon, on account of hit cabinets in 2026.
“You can always find something that you really like, the pop culture you’re into or the passion point you have,” Christiansen mentioned. “That works really well.”
In increasing its catalog of product, Lego has additionally grown its shopper base. Gateways into the model resembling its line of botanicals — crops, flower bouquets and succulents — and its ongoing partnership with Epic Games — which brings Lego to the digital area and components from the favored online game Fortnite into the bodily world — have inspired newcomers into the brick-building area, Christiansen mentioned.
“Then they figure out what it is and what it does for them, how it kind of allows them to express themselves, but also de-stress and focus on stuff in a different way,” he mentioned. “So botanicals sets turn out to be good at recruiting new consumers into the brand, and then as soon as they build their botanical set, they may move on to building something else.”
Lego opened 24 new shops globally throughout the first six months of the 12 months. The firm has been opening extra bodily retail places in areas that, in contrast to the U.Ok. and the U.S., didn’t develop up with the enduring coloured bricks. This contains international locations resembling China and India.
Having brick-and-mortar locations the place youngsters and adults can get their fingers on Legos and see the out there units has beforehand helped bolster gross sales.