Earnings

Lego revenue jumped 27% in 2021, as kids and adults continue to build

A customer reaches for a box from the Lego Dots range at the Lego A/S store in London, U.K., on Monday, March 7, 2022.
Bloomberg | Getty Images

Sales of Lego building kits continued to soar in 2021, as kids and adults stayed home to build “Star Wars” and “Harry Potter” models long after the coronavirus lockdown ended.

On Tuesday, the privately held Danish toymaker said its annual revenue jumped 27%, reaching $55.3 Danish krone, or about $8.06 billion, up from $43.7 Danish krone, or around $6.36 billion in 2020.

Lego was one of the toy companies that saw massive gains during the pandemic, as consumers of all ages gravitated toward its building sets for entertainment. The company touted its diverse selection of toys and their appeal across generations, as well as its e-commerce business to account for the sales surge.

The toymaker’s top performing brands included Lego City, Lego Technic, Lego Creator Expert, Lego Harry Potter and Lego Star Wars. These kits range in size and difficulty, with the company saying the themes make it fun for children to learn building skills while providing a creative outlet for adults.

Lego noted that as it enters its 90th year, it expects its growth rates to normalize and transition back to single-digit growth. Also in mid-2022, the company plans to begin phasing in sustainable sales packaging to replace single-use plastic bags it uses to separate Lego bricks.

During 2021, Lego opened 165 new stores, including 95 in China, bringing its total global store count to 832. China has become one of Lego’s top markets and accounts for 340 stores in its global retail footprint.

Lego’s strong earnings results comes as it has decided to stop delivering toys to around 80 independently owned stores in Russia in response to the war in Ukraine. The company has also donated around $16.5 million to emergency relief efforts, with a focus on providing support for children and families.

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