Ikea grows profits by 8%
Ikea saw its net profit rise by 8% to Â€3.2 billion in the last year as the furniture retailer grew it sales and market share.
In the year to 31 August 2012, sales increased by 9.5% to reach €27 billion, with around 4.6% of growth coming from existing stores after adjusting for currency changes.
Commenting on the results, Ikea’s president and CEO Mikael Ohlsson said: "The Ikea business idea is more relevant than ever. People around the world are more value conscious and appreciate beautifully designed and functional home furnishing solutions at affordable prices."
Ikea grew its share in all markets. The strongest performing markets included China, Russia, Poland, Germany and the United States.
The retailer now operates 298 stores in 26 countries, having opened 11 new stores in the year.
Operating profit fell by 3% due to a rise in raw material prices and the decision to maintain high inventories.
Ohlsson said: "To make sure that our customers always find the products they need when shopping at Ikea, inventory levels were kept deliberately high, a step that in turn supported sales."
Traffic to Ikea’s website rose by 21.8% in the year with more than a billion visits.
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