Lego's Earnings report | Key Points:
• Lego said on Tuesday that its yearly sales increased by 27 percent to $55.3 Danish krone ($8.06 billion), up from $43.7 Danish krone ($6.36 billion) in 2020.
• Consumers of all ages turned toward Lego's construction kits for amusement during the epidemic, making it one among the toy industries that enjoyed enormous increases.
• To explain the sales increase, the firm credited its diversified collection, which appeals to a wide variety of ages, as well as its e-commerce operation.
Long after the coronavirus quarantine was lifted, sales of Lego construction kits soared in 2021, as youngsters and adults stayed at home to assemble "Star Wars" and "Harry Potter" models.
On Tuesday, the privately-held Danish toymaker reported a 27 percent increase in yearly sales, to $55.3 Danish krone ($8.06 billion), up from $43.7 Danish krone ($6.36 billion) in 2020.
Consumers of all ages turned toward Lego's construction kits for amusement during the epidemic, making it one among the toy industries that enjoyed enormous increases. To explain the sales increase, the firm cited its varied variety of toys and their appeal across generations, as well as its e-commerce operation.
Lego City, Lego Technic, Lego Creator Expert, Lego Harry Potter, and Lego Star Wars were among the toymaker's best-selling lines. These kits come in a variety of sizes and levels of complexity, with the firm claiming that the themes make learning construction skills interesting for kids while also giving adults a creative outlet.
Lego anticipates its growth rates to stabilize as the company approaches its 90th year and go back to single-digit growth. In addition, starting in mid-2022, the business wants to phase in sustainable sales packaging to replace the single-use plastic bags it currently uses to separate Lego bricks.
In 2021, Lego will add 165 new stores worldwide, including 95 in China, increasing the overall number of locations to 832. China has become one of Lego's most important marketplaces, with 340 locations throughout the globe.