IKEA Owner Reports Lower Revenue and Profit as Costs Continue to Fall

The revenue figure, equivalent to $29.1 billion, includes franchise fees, sales of IKEA products to franchisees and revenue from the group’s own retail operations. IKEA retail sales across 13 franchisee groups fell to 43.8 billion euros from 44.6 billion euros. Net profit declined to 1.4 billion euros from 1.5 billion euros.

“Sales have remained stable in recent years, despite challenging market conditions. But to reach more people with affordable home furnishing, we need to return to growth,” Chief Executive Officer Jakub Jankowski said Friday.

Inter IKEA said it has been working to strengthen the business, create conditions for growth and reduce prices further. During the fiscal year, it cut its global workforce by 850 workers as part of efforts to simplify the company’s structure. Some IKEA brand stores also had to close, the group said.