Ikea group sees consumer recovery worldwide, posts record profit
World's leading furniture retailer posts record net profit of 3.3 billion euros and says it sees growth in consumer demand worldwide
The Ikea Group, the world’s top furniture maker, said on Tuesday it saw signs consumer spending was starting to recover in many of its markets as it posted record full-year profits.
Retailers have been struggling particularly in Europe, where Ikea generates nearly 70 per cent of its sales, as the global economic downturn and austerity measures, mostly in euro zone countries, hurt consumer sentiment and spending power.
Ikea, whose warehouse-like stores sell everything from highchairs to fitted kitchens, posted a net profit of 3.3 billion euros (HK$35.5 billion) in the 12 months through to August last year, up 3.1 per cent on a year earlier.
“Consumer spending is improving in many countries,” Ikea CEO Peter Agnefjall said in a statement. “While the challenging economic situation may not be over, there are positive signs.”
IKEA said it had seen strong growth in China, where it opened two new stores, as well as in Russia and the United States.
Southern Europe, still suffering from the effects of the downturn, was showing some positive signs, but sales fell in Spain and Italy, the company said.
Figures published in October showed that while sales at Ikea rose 3.1 per cent to 27.9 billion euros in the last year financial year, sales in comparable stores grew by 1.8 per cent.
