Wednesday, June 23, 2021

Lego builds towering sales during pandemic

Businesses that provide solutions for families locked in their homes with not much to entertain the children have been doing very well.

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A lot of businesses are going to the wall as a result of the worldwide pandemic.

Yet those that provide solutions for families locked in their homes with not much to entertain the children are doing very well.

Lego is one of those fortunate companies.

The Danish toymaker said Wednesday that sales jumped 14% in the first half of 2020 compared to the same period last year.

CEO Niels Christiansen pointed to previous investments in e-commerce as crucial during a period in which many retail stores were shut.

Lego’s operating profit rose 11% to US$622 million as a result, according to CNN Business.

It’s not just Lego grinning through the pandemic.

Game makers have also been coining it in as social distancing restrictions encourage millions to find new ways to pass the time on their couch.

Nintendo’s operating profit surged 428% in its most recent quarter as the Switch console and “Animal Crossing” game continued to drive sales. The company’s shares are up 35% this year.

On the other hand, toy conglomerates like Mattel and Hasbro have struggled. These companies blame manufacturing and distribution issues tied to the pandemic as big frustrations.

“We entered the second quarter with extensive retail closures and distribution challenges and had to absorb a full quarter of Covid-19 impact,” Mattel CEO Ynon Kreiz said.

Between April and June, the Barbie-maker saw net sales drop 15% compared to 2019.

Mattel and Hasbro are now looking ahead to Christmas, when they hope they can claw back some lost ground.

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