Billion-dollar Lego factory… some assembly required. Lego plans to drop $1B on its first US factory (in Virginia) as demand for its colorful blocks stacks up in one of its biggest markets. The family-owned Danish toy giant plans to spread the investment over the next decade, creating nearly 2K new American jobs.
“Go play with Lego, Elsa”… Despite inflation and the no-stimmy era, parents are still splurging on new playthings — an extension of the pandemic toy frenzy. Last year, Lego’s revenue jumped 27% to $8B as parents WFH’d with kids. Rivals Mattel and Hasbro also saw double-digit growth thanks to demand for iconic franchises like Hot Wheels and Barbie. Now:
Playing wide is a hedge… While Mattel and Hasbro have focused on their target customer (kids), Lego has expanded its portfolio to appeal to consumers of all ages. That’s helped it grow faster than rivals. From intricate builds like the “Star Wars” Death Star (4K pieces) to nostalgic faves like the set of “Seinfeld” and James Bond’s Aston Martin, Lego’s adult offerings could help protect its biz — even if parents ditch kids’ sets.