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Ikea's U.S. sales rose 11% in latest fiscal year

Conshohockken, Pa. - Ikea reported that its U.S. sales for the fiscal year ended Aug. 31 grew 11% from the previous year, and same-store sales were up 8%.
Worldwide, Ikea Group's sales were up 7.1% to 27.6 billion euros (about $36.8 billion at today's exchange rates) and same-store sales increased 4.6%, the company said. It did not provide sales totals and said group percentages were adjusted for currency impact. Without the adjustment, total group sales were up 9.5%.
Net profit for the giant Sweden-based home furnishings retailer grew 9% to 3.1 billion euros ($4.2 billion), the company said.
While the company didn't disclose U.S. sales in dollars, an official said they accounted for 12% of global sales, which would be around $4.4 billion.
In its past fiscal year, "We managed to grow in most markets," said Mikael Ohlsson, Ikea Group president and ceo.
"The markets where we grew the most were China, Russia and Poland, closely followed by the United States and Germany. We opened 11 new stores and welcomed 8,000 more co-workers," he said.
In a release, the company said that Ikea Group has 139,000 employees, and 47% of all managers are women.
It said its profits "were reinvested in new and existing stores, more than 2,000 inspiring products, new and better services, and in e-commerce." Investments also were made in renewable energy, the company said, adding that Ikea produces renewable energy equivalent to a third of its energy consumption.
"We believe in sustainable growth, by expanding from our own resources, making long-term decisions and growing within the limits of the planet," Ohlsson said.
In the United States, the company said it continued to lower prices on some best-selling items, including its Poang chair and Malm queen bed frame.
Another contributor to growth was the introduction of new and expanded services, including home delivery, merchandise picking, assembly and kitchen installation, it said.
It's also in the process of investing in total remodels of the U.S. stores' Marketplace areas, which sell items such as cookware, bed linens, lighting and rugs. This past fiscal year, 13 U.S. stores received the remodels and this year, 17 more will be completed.
U.S. sustainability initiatives include continued work on its $150 million investment in rooftop solar energy systems that eventually will cover 39 of its 44 stores and non-store locations. Also this past year, 31 electric vehicle charging stations were installed at nine western U.S. stores.

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