Despite a decline in worldwide demand, Lego was able to outperform and gain market share from its competitors last year thanks to the popularity of its Harry Potter and Fortnite play sets.

The Danish toy manufacturer soared in the United States and central and eastern Europe thanks to its Harry Potter-themed products and its new Fortnite line, which includes small figurines, bricks, and a video game based on Epic Games’ blockbuster franchise.

This was the case even as demand for toys fell around the world since shoppers were hesitant to buy more due to inflation and stores were careful with their inventory levels.

In 2023, Lego’s consumer sales increased by 4%, surpassing both the worldwide toy market’s 7% decline and the sales performance of its competitors.

Although Mattel’s sales of dolls and accessories were flat on the year due to the Barbie runaway box office blockbuster, Hasbro’s income decreased 15% despite the company’s ownership of brands like Monopoly and Play-Doh.

According to Lego CEO Niels B. Christiansen, the toy market in 2023 was the worst it has been in over fifteen years. By increasing our market share and demonstrating the attractiveness of our robust and diversified portfolio, we considerably surpassed the market.

In 2024, the toy market should experience normal growth rates and consumer behavior similar to that before the COVID-19 pandemic. This is according to the company’s predictions.

Last year, Lego’s total revenue increased by 2% to 65.91 billion kroner ($9.66 billion). However, the company’s net profit decreased by 4.9% to DKK13.11 billion due to expenditures in expanding their digital toy line, increasing their worldwide manufacturing capacity, and promoting sustainability.

Opening 147 new branded locations last year and increasing the total number of stores globally to over 1,000, the expansion has continued this year, indicating that it has also been expanding spending on its retail stores.

Even while the company is easing up on shop openings in China due to the country’s slowing economy, another 100 stores are set to open in 2024, with about 40% of those locations located in the country.

Due to increased spending on strategic projects including sustainability, retail platforms, and digitization, Lego forecasts net profit to drop slightly in 2024, with revenue growth in the single digits ahead of the global toy market.