The LEGO Group reports double-digit growth

RetailME Bureau

The LEGO Group reports double-digit growth for the first six months of 2020, ending June 30. Revenue for the period grew 7% to DKK 15.7 billion compared with the same period in 2019. Consumer sales grew 14% compared with H1 2019 and the brand’s global market share also increased. Operating profit was DKK3.9 billion, an increase of 11% compared with 2019.

“The strong results are due to our incredible team. When COVID-19 closed stores and offices, our colleagues did everything they could to stay safe and bring play to children and families around the world. I would like to thank them for their extraordinary contribution and their continued fantastic efforts,” said LEGO Group CEO, Niels B. Christiansen. “During the first half, we saw the benefits of our investments in long-term growth initiatives such as e-commerce and product innovation. Our strong portfolio appealed to builders of all ages and our recently upgraded e-commerce platform and agile global supply chain allowed us to fulfil online demand. We also collaborated closely with our retail partners to ensure they could continue to supply their shoppers online.”

Also read: LEGO KSA exceeds initial sales projection by 3X

The LEGO Group delivered double-digit consumer sales growth in its major market groups including the Americas, Western Europe, Asia-Pacific and China. Operating profit growth was driven by strong sales, offset by bold investments in long-term growth initiatives and higher freight costs associated with shipping products following temporary, government-mandated factory closures in Mexico and China.

During the first half of 2020, The LEGO Group continued to invest in long-term growth initiatives designed to achieve its ambition to reach more children around the world.

“Many of the major trends shaping our industry, such as digitalisation and e-commerce, are accelerating as a result of the pandemic. We saw strong growth in digital and traditional play, a rapid shift to e-commerce and the importance of having a truly global operating model,” Christiansen observed.

During the first half of 2020, the Group unveiled LEGO Super MarioTM, an entirely new play experience that blends digital and physical play. There was a significant increase in engagement in the company’s digital play experiences. In the first six months, downloads of LEGO digital building instructions doubled to two million and every two seconds a piece of content was shared on LEGO Life, a safe digital play app, which has more than 9 million users in 80 countries.

Visitors to the LEGO.com e-commerce platform doubled to more than 100 million in the first half of 2020, compared with the same period a year ago. The company also plans to continue creating unique physical brand experiences for shoppers and is on track to open around 120 new retail stores in 2020.

As The LEGO Group reports double-digit growth, Christiansen stated “While retail has been transformed during the past six months, we continue to see great opportunity for an omnichannel model. We will continue to invest in upgrading our e-commerce capabilities to support both our retail partners and our own platform and continue to invest in creating fantastic physical brand experiences for shoppers and fans.”

 

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