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Lego first-half sales hit record $5.4B on strong demand, global brand partnerships

by August 27, 2025
by August 27, 2025

Danish toymaker Lego reported a record first-half performance on Wednesday, with sales rising 12% to 34.6 billion Danish crowns ($5.43 billion), boosted by strong consumer demand and partnerships with leading global brands.

The performance marked the best start to a year in Lego’s history, outpacing rivals Mattel and Hasbro in a competitive market.

“The toy market is actually back to growth this year, but we are outpacing it and taking market share,” Chief Executive Niels Christiansen said.

“It’s the best first half ever,” Christiansen told CNBC. “It’s a record on revenue, a record on operating profit, it’s a record on net profit. … So, we are very happy.”

He noted that the global toy industry grew by nearly 7% in the same period, while Lego achieved double that rate.

Strong profit growth and supply chain resilience

Operating profit for the first six months rose 10% to 9 billion crowns, with Christiansen attributing the gains to Lego’s manufacturing network spanning six countries, including Denmark, Hungary, Mexico, China, and Vietnam.

“We have a reasonable setup in our supply chain. So the logic we apply is that we would like to produce the product as close to the consumers as possible,” Christiansen said.

The company’s geographically diversified factories have helped it manage tariff impacts more effectively than peers reliant on Chinese production.

Construction of a new US factory in Virginia is underway, expected to open in 2027.

Christiansen emphasized that the plant was planned for growth, rather than as a reaction to trade disputes. Lego is also expanding sites in Mexico and Hungary to meet increasing global demand.

Expanding product lineup with major brand tie-ups

The company launched a record 314 new sets in the first half of 2025, expanding its catalog with collaborations across entertainment and pop culture.

Partnerships with Formula One, Fortnite, Jurassic Park, Bluey, and anime franchise One Piece have attracted new consumer segments, while a tie-up with Pokémon is set to debut in 2026.

“You can always find something that you really like, the pop culture you’re into or the passion point you have,” Christiansen said, highlighting the importance of licensed sets in diversifying Lego’s fan base.

In addition, Lego’s botanical line—featuring plants, succulents, and flower bouquets—has proven successful in attracting adult customers, many of whom move on to larger, more complex builds.

The partnership with Epic Games, which integrates elements from Fortnite into physical sets, has also expanded Lego’s reach into the digital gaming world.

Growth across global markets, including China

Lego reported sales growth across all major markets, including China, where it has faced challenges in recent years.

US sales grew at double-digit rates, supported by renewed consumer demand and an improved retail environment.

The company also opened 24 new stores worldwide in the first half of 2025, with a focus on countries such as China and India, where Lego is still building brand recognition.

Christiansen said brick-and-mortar stores remain a key driver of growth, offering customers hands-on experiences that encourage purchases.

Outpacing rivals amid market uncertainty

While the broader toy market has returned to growth, Lego continues to outperform peers.

Analysts point to its brand partnerships, resilient supply chain, and global expansion as factors that give it an edge over competitors.

By contrast, Barbie-maker Mattel and Hasbro, the company behind My Little Pony, face greater volatility due to their reliance on Chinese manufacturing.

Despite lingering economic uncertainty, Christiansen said Lego has not seen evidence of US consumers trading down to cheaper products.

“It’s a record on revenue, a record on operating profit, it’s a record on net profit. … So, we are very happy,” he told CNBC.

As Lego looks ahead to its 2026 Pokémon collaboration and further store openings, the company is positioning itself to sustain growth while maintaining its dominance in the global toy market.

The post Lego first-half sales hit record $5.4B on strong demand, global brand partnerships appeared first on Invezz

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