What's going on?

Lego announced record 2021 results on Tuesday, after the world�s biggest toymaker spent the year carefully assembling a winning strategy.

What does this mean?

Lego was given a new lease of life in 2020, when tinkerers of all ages replaced a world they were locked out of with one made of blocks. And turns out it�s a hard habit to kick: Lego fans rushed back to the company�s reopened stores last year, in hopes of getting their hands on one of its must-have Harry Potter and Star Wars kits. That demand didn�t just offset the company�s higher costs: it made Lego one of the few retailers to open stores last year � 165 of them, to be precise. That drove its revenue 27% higher last year than in 2020, and its profit up by more than a third � both to record highs.

Why should I care?

The bigger picture: Lego�s building.
Lego has been dominating the toymaking market for years now, and that�s partly down to some smart planning: the company builds production facilities close to where it wants to sell its toys, meaning it reduces the logistical costs and challenges that most of its rivals are facing. That�s been especially important in the last 18 months or so, when supply chains have been all blocked up. And it�s not stopping now: Lego�s planning to start building its sixth global factory in Vietnam soon, as part of a $1 billion push to tap into the Asian market (tweet this).

Zooming out: A jawline made for Hollywood.
Still, Lego�s update shows that it isn�t immune from higher costs, and nor are its rivals. That might be why Barbie-maker Mattel said last month that it�s planning to push into areas like gaming, filmmaking, and NFTs to help boost sales. It�s not a bad idea: projects like those aren�t wrapped up with supply chains, and a world as calamitous as this needs � no, deserves � Ryan Gosling as Ken.