Full year profits rise 6% at Ikea

Total sales for Swedish based homewares retailer Ikea Group increased by 7.7 per cent in its full 2010 financial year (FY10), according to results published today.

Ikea also announced that net profit was 6.1 per cent higher year-on-year in the 12 months to August 2010, in what is only the second public financial statement from the flat-pack furniture specialists.

The retailer claimed that the growth in profits was due to higher gross margin and improvement to its cost structure, along with the increase in sales.

Mikael Ohlsson, CEO and Group President of Ikea, said: “FY10 was a good year financially for us - sales grew despite tough market conditions in many countries.

“Profits give us the resources to grow and reach more people on existing and new markets as well as lowering prices.”

It was also announced that Ikea will be reinvesting its profits into opening 12 new stores this year, with one proposed in Reading, Berkshire as previously reported by Retail Gazette.

Earlier this year the group became the biggest seller of home furnishings in the UK, according to a study conducted by Verdict Research.

Like-for-like UK sales for FY10 were reported as rising by just 1.1 per cent in previous results published in October.

Ohlsson added: “In times like this, even more people appreciate value for money in terms of good design and functional home furnishing products at affordable prices and we are committed to continuing that journey.”

Source : Retail Gazette