Lego is out with its annual results and sales are up. The Danish toy company, which got its start in the 1930's, is on a roll. The Lego Movie is a huge hit, already raking in about $185 million in the U.S., and the company’s sets of blocks are growing faster than the industry as a whole, toping what analysts call construction toys.
“Lego really dominates that category. They are really the marque brand,” says Stephanie Wissink, senior research analyst at Piper Jaffrey. She says Lego has done a good job changing with the times. “Now they’re creating more storylines around their products.”
Wissink says the company has managed to create a line of toys that appeal to everyone from two-year-olds to middle-aged adults. Lego is privately held, so you can’t invest in the company, but you can invest with Legos.
“Sets that were selling for $300 are now selling for $1,200,” says Ed Maciorowski, who runs brickpicker.com, a site for Lego investors. He says the average Lego set can appreciate 10 to 12 percent a year, and sometimes far more. That’s better than stocks.