Helped by brand tie-ups, Lego's first-half sales hit a record

By Stine Jacobsen

COPENHAGEN (Reuters) -Danish toymaker Lego said on Wednesday its first-half sales rose 12% to a record 34.6 billion Danish crowns ($5.43 billion), as partnerships with other major brands, including Formula One and Jurassic Park, helped it to outperform its peers.

"The toy market is actually back to growth this year, but we are outpacing it and taking market share," Lego CEO Niels Christiansen said in an interview, adding that the broader toy market had grown by nearly 7%.

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

Partnerships with brands such as Formula One, Fortnite, and Jurassic Park helped to drive sales across diverse consumer segments, Christiansen said.

Despite economic uncertainties related to trade tensions, Lego, known for its long-running Star Wars and Harry Potter franchises, has not seen a significant trend for U.S. customers to trade down to cheaper products, Christiansen said.

Operating profit for the first six months was up 10% to 9 billion crowns, supported by Lego's global manufacturing network, which spans six factories across Denmark, Hungary, the Czech Republic, 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, adding that the company has been able to manage tariff impacts.

Lego is expanding its largest manufacturing site in Monterrey, Mexico, and in Hungary, while construction of a new U.S. factory in Virginia is expected to be completed in 2027. Christiansen said the Virginia site was planned for growth rather than as a response to tariffs.

U.S. sales grew at double-digit rates, with Christiansen noting that the local toy market has returned to higher growth levels than in recent years.

The family-owned company launched a record 314 new building sets in the first half of 2025 and is expanding its consumer base through partnerships with brands, including Bluey and One Piece. A tie-up with Pokémon is set to debut in 2026.

Lego's peers, including Barbie-maker Mattel and Hasbro <HAS.O>, maker of My Little Pony, remain more exposed to tariff volatility due to their reliance on Chinese manufacturing.

($1 = 6.3751 Danish crowns)

(Reportuing by Stine Jacobsen; editing by Jacob Gronholt-Pedersen and Barbara Lewis)