IKEA calls 2022 an 'exceptional year' despite challenges
Swedish home furnishings giant IKEA says that despite “unprecedented challenges” caused by the war in Ukraine, supply chain disruptions, increased inflation and lingering fallout from the COVID-19 pandemic, 2022 had been an “exceptional year.”
STOCKHOLM (AP) — Swedish home furnishings giant IKEA said Thursday that despite “unprecedented challenges" caused by the war in Ukraine, supply chain disruptions, increased inflation and lingering fallout from the COVID-19 pandemic, 2022 had been an “exceptional year.”
The world’s biggest furniture brand reported retail sales of 39.5 billion euros ($38 billion) this financial year, which ran from Sept. 1, 2021, to Aug. 31. That was a 5.6% increase from the previous year's sales of 37.4 billion euros.
However, inflation and supply chain issues led to rising costs and higher prices, meaning sales quantities were down though they cost more and there were struggles to keep shelves full. Online sales down 10% lower from fiscal 2021.
“We lived up to the challenge — achieving solid performance in a disrupted environment, making tough decisions, while always keeping sight of the needs and dreams of the many," said Jesper Brodin, chief executive of the holding company Ingka that manages most of IKEA’s stores.
