By Jacob Gronholt-Pedersen

COPENHAGEN (Reuters) – Lego’s sales of its colorful plastic bricks outpaced the overall toy market in the first half of the year, driven by strong demand in Europe and North America, the Denmark-based toymaker said on Wednesday.

The surge in Lego’s sales contrasts with a stagnating global toy market and tepid sales for rivals such as Barbie-maker Mattel and Hasbro, the firm behind My Little Pony.

The family-owned Lego company said sales from January through June rose 13% to 31 billion Danish crowns ($4.65 billion). By comparison, Lego increased first-half sales by 1% last year and 17% in 2022, year over year.

“We have performed significantly better than the overall toy market and have grabbed market share at a fairly high pace,” CEO Niels Christiansen told Reuters.

The global toy market has stagnated this year following a 7% decline in sales last year, he said.

Lego’s operating profit rose 26% to 8.1 billion crowns.

Following the strong start to the year, Christiansen now expects double-digit sales growth in 2024, compared with earlier guidance of single-digit growth.

The company plans to open around 100 stores this year, slightly fewer than in previous years, bringing the total number of stores above 1,100.

We are opening slightly fewer stores in China right now because we see that consumers there are holding back a bit,” Christiansen said.

Instead, the company has shifted focus to Europe and North America, where it is seeing strong demand.

Lego Icons, which includes models of the Eiffel Tower and Titanic, was among the best-performing themes along with City, Technic and Star Wars. The company launched around 300 sets in the first half.

($1 = 6.6712 Danish crowns)

(Reporting by Jacob Gronholt-Pedersen; Editing by Rod Nickel)