Move over, Barbie. For the first time ever, Lego has surpassed fellow toy maker Mattel in total revenue, making Lego the number one toy company in the world.
Lego announced the news Thursday, citing an 11 percent increase in sales for the first six months of the year equaling just over $2 billion. What is the reason for the bump? Lego says it is the runaway success of "The Lego Movie," which brought in more than $468 million worldwide and resulted in people buying up merchandise that tied into movie.
It represents a larger trend for Lego, which has tripled its sales numbers in the last six years as it expanded to new markets. According to the Wall Street Journal, Lego sales were up by double digits in North America and Europe, but the real growth comes from China, with a sale increase of 50 percent. Lego recently opened its first office and factory in China.
While Lego flourishes, Mattel, the creator of Barbies, Hot Wheels and more, has struggled. In July the company announced Barbie sales declined 15 percent, and sales of their Fisher-Price brand fell 17 percent. In February Mattel purchased direct Lego competitor Mega Bloks for $460 million, no doubt in an effort to keep up with Lego's growth.
A lot can change in the last few months of the year, however. Traditionally the majority of toy sales occur during the holiday season, giving Mattel a chance to make up lost profits or just another opportunity for Lego to pull ahead, if the company can manage to keep its momentum going into the second half of the year.
"It is too early to say if the strong performance will be reflected in the full year results as the majority of LEGO sales to consumers happen in the second half of the calendar year in a short time-span of a few weeks leading up to the holiday season," Lego CFO John Goodwin said in a statement. "The strong performance of the LEGO Movie products had a positive effect during the first half of 2014, and it remains to be seen how the line will continue to develop behind the highly anticipated launch of the LEGO Movie on DVD in the 2nd half of 2014."
No matter what the holiday season holds in store, after the success of "The Lego Movie" and this most recent news, everything is definitely awesome for Lego right now.
