Lego is breaking sales records as the overall toy industry struggles to break even.
The Danish toy brickmaker, which enjoys a cult following among adults and kids alike, turned in record sales and operating profit for the first half of 2024, the company said Wednesday.
Revenue climbed 13% to $4.6 billion as customers scooped up Star Wars, Harry Potter, Fortnite, Peppa Pig and other pop culture sets that go for between $20 and $500 or more a pop.
“Our portfolio continues to be relevant for all ages and interests, and this is driving significant demand across markets,” Lego chief executive Niels Christiansen said in a statement.
Lego’s boom comes as its rivals Mattel and Hasbro reported sales declines over the same period, down 1% and 21%, respectively.
The privately-held company has benefitted from a surge in demand from adult customers who spend hundreds of dollars on elaborate sets.
Lego has an “Adults Welcome” division that offers a $150 Jaws set that is currently on back order and a Titanic set for $680, which is also on back order, according to its website.
This year, for the first time ever, toy demand from preschoolers was surpassed by demand from toy enthusiasts over the age of 18, with the latter accounting for $1.5 billion in sales from January to April, according to data from Circana.
Adult toy collectors are the “most important age group” for the toy industry, according to Circana.
Last year, the industry suffered a 8% sales decline as rising inflation squeezed consumers’ budgets. The 2023 holiday season was the weakest in five years as shoppers focused on bargains.
This year, sales have improved but are still down 1% through April compared to the same period a year ago, according to consumer research firm, Circana.
Lego customers also pinched pennies last year, buying lower priced sets, Christiansen told CNBC, but he added “they’re not trading further down.”
“So that has stabilized. And we see almost all of the growth is actually growth in volume,” he said.
While Lego’s sales in the US and Europe are strong, its sales in China are flat, the company said.
Net profit grew 16% to $570.7 million, while operating profit spiked by 26% to $770.5 million.
