Lego hails record profits as partnership strategy expands
Claiming to have “significantly outpaced” the wider toy industry, Lego is ramping up its partnerships with the likes of Fortnite and Nike in a bid to reach more consumers.
Toy retailer Lego has credited its “diverse portfolio” and “continued strategic investments” for driving record profits.
Claiming to have “significantly outpaced” the wider toy industry, Lego’s net profit grew by 16% to DKK 6bn (£680m) during the first half of 2024, with revenue up 13% to DKK 31bn (£3.5bn). Operating profit grew 26% to hit a record DKK 8.1bn (£919m)
Reporting its first half earnings today (28 August), the toy giant claimed to have grown market share through strong demand for its “large and diverse portfolio”, especially in the Americas and Europe. Lego also highlighted its decision to increase spending on “strategic initiatives” spanning sustainability, retail and digitalisation to drive short- and long-term growth.
“We delivered double-digit growth on the top- and bottom-line and made significant progress on increasing the amount of sustainable materials used in our products,” said CEO Neils B Christiansen.
“Our portfolio continues to be relevant for all ages and interests, and this is driving significant demand across markets.”
Lego brand director: Purpose drives pricing power
The company launched 300 new sets during the first half in a bid to diversify its portfolio, with top performing lines including Lego Star Wars and Lego Harry Potter. Increasing demand for the brand’s Lego Play offerings on Fortnite has led to an expansion of the partnership, with the first Lego Fortnite sets slated for release in October designed to “bridge digital and physical play”.
The business is set to diversify its portfolio further and reach new audiences in an upcoming multi-year global partnership with Nike. The partnership will kick off next year, with a series of co-branded products, content and experiences expected.
During the first half, Lego opened 41 new stores, driving increased footfall, as well as relaunching its Lego Play app, replacing the Lego Life app, established in 2017 as the first social network for kids.
Christiansen added the business is proud to have played a role in putting “play on the agenda” for children worldwide. This mission also helps Lego affirm its position as a premium toy brand.
Speaking in April, Lego director of brand marketing, Carolina Teixeira, claimed the company’s position as a premium brand is “bolstered by its purpose and inclusivity”, describing this inclusive approach as a “win win” for the business and wider society.
“Purpose and inclusivity are key drivers of meaningfulness and difference, which are key drivers of price inelasticity,” Teixeira said at the time.
