IKEA Group Announces Strong Financial Growth for Fiscal Year 2010 with Net Profit Up 6.1% at €2.7 Billion
HELSINGBORG, Sweden -- IKEA, the world’s largest home furnishings retailer, today announced that the IKEA Group FY 2010* is growing and financially strong with sales up 7.7% to €23.1 billion (approximately $29.3 billion). The IKEA Group net profit for FY10* increased by 6.1 % to €2.7 billion, compared to the previous fiscal year. IKEA Group states these strong results were due to increasing sales, higher gross margin and improvements in the cost structure of running the business.
"FY10 was a good year financially for us – sales grew despite tough market conditions in many countries. Profits give us the resources to grow and reach more people on existing and new markets as well as lowering our prices. The main part of the profit was re-invested in existing as well as twelve new stores in order to become even more inspiring and accessible. In times like this, even more people appreciate value for money in terms of good design and functional home furnishing products at affordable prices, and we are committed to continuing that journey,” says IKEA Group President and CEO Mikael Ohlsson.
Maintaining its commitment to long-term sustainability programs, IKEA continued to invest in renewable energy sources during FY10, nearly doubling the amount of solar panels installed on IKEA locations around the world and purchasing 52 wind turbines in parts of Europe. Also in 2010, the IKEA Foundation donated €45 million to charitable projects to help fund programs designed to improve the rights of children and youth in the developing world. This effort will have benefited 100 million children by 2015, enabling them to create a better future for themselves and their families.
During FY10 in the US, IKEA comparable store sales were up 5% with aggressive strategies in lowering prices on many top selling IKEA products. Also, US investments during this time included installing solar panels atop the Tempe, AZ store and initiating 10 more solar energy programs for the next fiscal year. Additionally, IKEA US also announced in June 2010 the phase out of all incandescent bulbs for January 2011. In terms of expansion, construction began on the IKEA store slated to open later this year in Centennial, CO. This location will also be the first to have a geothermal component as part of its HVAC system.
The IKEA Group’s yearly summary, called “Welcome inside,” and IKEA Group Sustainability Report FY09 are available on www.IKEA.com. The IKEA Group Sustainability Report FY10 will also soon be published online.
*The fiscal year 2010 of IKEA runs from September 1 2009 to August 31 2010
For further information, please contact: Media Relations, the IKEA Group
+46 709 936376
In the US, Contact: Mona Astra Liss, IKEA Corporate PR
Mona.Liss@IKEA.com ~ 610.834.0180, ext. 5852
IKEA, the world’s leading home furnishings company, was founded in 1943 in Sweden. Since then, IKEA has offered home furnishings and accessories of great design and quality with functional living solutions at everyday low prices. There are currently 283 IKEA Group stores in 26 countries. In total, there are more than 300 IKEA stores in 37 countries, including 49 in North America (11 in Canada; 37 in the US; 1 in the Dominican Republic). IKEA has six distribution centers in North America. IKEA has been named to Business Week’s List of The Best Global Brands (August 7, 2006) for four consecutive years and Business Week’s List of the Top 2009 Twenty Best Companies for Leadership (February 2010). Additionally, IKEA has been listed on Working Mother magazine’s annual list of the “100 Best Companies for Working Mothers” for four consecutive years. IKEA was also listed in March 2007, on Fast Company’s Fast 50, for its environmentally responsible products, as well as for five consecutive years in Training magazine’s annual list of top companies that excel at human capital development. TIME Magazine (May 2009) listed IKEA as one of the top 8 most global eco conscious companies. IKEA incorporates environmentally friendly efforts into day-to-day business and continuously supports initiatives that benefit causes such as children and the environment including UNICEF, Save the Children and American Forests. To visit the IKEA Web site, please go to www.IKEA-usa.com and also learn more about IKEA environmental and social responsibility actions and programs. Also visit www.Facebook.com/IKEAUSA.
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