What’s Going On Here?On Wednesday, Lego reported strong sales growth in the first half of the year. What Does This Mean?With real bricks and mortar looking pretty unappealing right now, consumers seem to be finding solace in bricks of another kind: yes, we’re talking about Lego, a favorite plaything of kids across the globe and an age-old nemesis of adults' bare feet. In the first six months of the year, the toy manufacturer opened 66 new stores, mostly in China, helping to boost sales by 17% versus the same period last year. (Financial wizardry due in large part to enthusiasm for Lego’s Harry Potter and Star Wars sets.) That said, profits didn’t quite keep in step: investments in digital offerings and sustainable manufacturing processes sapped cash, as did higher raw material and energy costs – meaning the Danish toymaker’s profit didn't actually grow in the period. Why Should I Care?The bigger picture: A winning strategy.
Lego, the world’s biggest toymaker outside the North Pole, has reaffirmed its position as the titan of the toy industry. It boosted its market share in key regions every month in the period, leaving the wider industry – whose size grew by just 1% – eating dust (tweet this). See, unlike many rivals, Lego keeps manufacturing close to where it sells, so global supply chain trouble has been a non-issue for the firm. And unlike competitors, the toymaker hasn’t upped its prices in recent months – keeping its wide range of products attractive to adults and kids alike.
Zooming out: More bricks to come.
Lego doesn’t intend to rest on its laurels either: the company’s planning to spend over $1 billion on a US factory to keep up with customer demand – its seventh manufacturing site worldwide. The ribbon-cutting’s scheduled for the second half of 2025, when the green factory – powered by an onsite solar park – will start churning out its portion of Lego’s 100 billion yearly bricks. | 
