For the 2024–2025 fiscal year, IKEA’s profit after tax fell to 1.5 billion euros ($1.7 billion), according to its holding company, Inter IKEA, News.Az reports, citing foreign media.
“We saw effects based on the big price decreases,” said Henrik Elm, Inter IKEA’s chief financial officer, in an interview with AFP. The Swedish group has allocated between two and three billion euros to reduce prices by around 10% over the past two years — a move that Elm said aligns with Ikea’s long-term business model.
While overall sales revenue declined 1% to 44.6 billion euros, sales volumes rose 2.6%, and store visits increased 1.9%, reflecting stronger customer demand.
However, operating profit dropped 26% to 1.7 billion euros, as lower prices and increased supply chain costs — including U.S. import tariffs — squeezed margins. “The higher sourcing costs included the costs for increased tariffs, which have been partly absorbed,” IKEA said, referring to tariffs imposed under U.S. President Donald Trump.
North America accounts for about 10% of IKEA’s global sales. The company has also increased inventory levels to improve product availability.
Elm said IKEA remains “cautiously optimistic” about 2026 and beyond, noting its strong market position for future growth.
Founded in 1943 by Ingvar Kamprad, IKEA is privately held and not publicly listed, though it began publishing partial financial results in 2010 following transparency concerns.
