# Lego posts strong growth on robust demand, new store openings
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Lego reports double-digit sales growth, outpaces competitors
Meta Description: Lego exceeded expectations in the first half of the year, with 17% revenue growth and steady operating profit, outpacing competitors in major markets.
URL: https://financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openingshtml

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By Jacob Gronholt-Pedersen

COPENHAGEN (Reuters) – Lego on Wednesday posted double-digit sales growth in the first half of the year, driven by new store openings and robust demand for its colourful plastic bricks despite rising costs and inflation hitting consumers.

The family-owned company said it had outpaced the toy industry in all major markets during the first six months of the year, when revenue increased 17% to 27 billion Danish crowns ($3.48 billion).

Operating [profit for the period was steady from last year](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") at 7.9 billion crowns.

We’ve [gained market share](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") every month in all our major markets, and we’re growing significantly faster than our competitors,” Chief Executive Niels Christiansen told Reuters in an interview.

We enter the [peak Christmas season](https://www.financedigest.com/colnvestor-partners-with-leading-cohort-of-fund-managers-ahead-of-peak-tax-season.html "Colnvestor partners with leading cohort of fund managers ahead of peak tax season") with good momentum,” he said.

The Danish company [opened 66 new stores](https://www.financedigest.com/apple-opens-store-on-chinas-wechat-platform.html "Apple opens store on China’s WeChat platform") in the six-month period, of which 43 were in China, bringing the total number of Lego branded stores to 833 worldwide.

Prompted by higher costs of energy, freight and plastic resin, Lego in August [increased prices](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") for some of its products, although products aimed at children had mostly been shielded against price increases, Christiansen said.

Lego increased consumer [sales by 13% in the six-month period](https://www.financedigest.com/uks-wetherspoon-posts-13-1-rise-in-sales-for-25-wk-period.html "UK’s Wetherspoon posts 13.1% rise in sales for 25-wk period") compared to 1% growth in the global toy market, Christiansen said.

Lego’s success was due to a product portfolio catering to both adults and children, and to a decade-old strategy of placing production close to its key markets, which has been beneficial as the global retail industry has faced [supply chain issues](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease"), Christiansen said.

Popular toys in the first [half of the year](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7") included its Star Wars, Harry Potter, and Technic sets.

The [company has also moved](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") part of next year’s salary increases forward to this year to help employees through a winter with high energy bills, Christiansen said.

($1 = 7.7559 Danish crowns)

Read more:

Lego closes Russia business indefinitely, [lays off 90 staff](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day")

Lego to [invest over $1 billion](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") in U.S. brick plant

(Reporting by Jacob Gronholt-Pedersen; Editing by Lisa Shumaker)


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