Swedish furniture giant Ikea reported a one-percent decline in sales for its 2024–2025 fiscal year on Thursday, citing price reductions and cautious consumer spending.
For the year ending in August, sales fell to €44.6 billion ($52 billion), though volumes and customer numbers increased by three percent, Inter Ikea, the company’s holding firm, said.
“We have prioritised lower prices, volume, and customer growth over the last two years,” Inter Ikea CEO Jon Abrahamsson Ring told AFP. The company cut prices by 10 percent during this period to boost traffic in both online and physical stores.
Abrahamsson Ring noted that consumer confidence has been declining for several years and, despite stabilising over the past year, remains at historically low levels. As a result, many customers are delaying home renovations or furniture purchases across all 63 markets where Ikea operates.
Looking ahead, Inter Ikea plans to continue reducing prices, but at a more moderate level of one to three percent annually. The CEO added that the current fiscal year is “starting well”, with growth in volume, customer visits, and revenue.
Abrahamsson Ring also emphasised the importance of predictable and consistent trade policies following US President Donald Trump’s recent tariffs on imported wood, furniture, and kitchen cabinets. Much of Ikea’s furniture sold in the US comes from Europe and is subject to a 15-percent tariff agreed under a July EU–US trade deal.
“The agreement provides predictability, which is most important,” he said, stressing that rule-based, open trade benefits both Ikea and global commerce.