IKEA Brand Owner Accelerates Profit Growth Despite Pandemic
STOCKHOLM: The owner of furniture brand IKEA accelerated profit growth in the 12 months through August despite COVID-19 as shoppers stuck at home during the pandemic spent more on furnishing, and as lower wood prices helped boost margins.
Inter IKEA Group, a franchisor to store owners, said on Tuesday its pretax profit grew 13% to 2.02 billion euros ($2.36 billion). In the previous fiscal year, profit growth was 5%.
The firm, which generates the bulk of revenues from sales of goods to its franchisees, said in September franchisees’ sales shrank 4% in the year to 39.6 billion euros due to the pandemic and temporary store closures, although demand picked up after stores re-opened.
Inter IKEA Chief Financial Officer Martin van Dam told Reuters that sales in September and October had remained strong, rising year-on-year, after “a fantastic pick-up” in the June-August period.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
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