Ikea Furnishes Strong Results Despite Pandemic
Fahad Shabbir (@FahadShabbir) Published November 24, 2020 | 08:21 PM
Consumers continued to spend strongly to furnish their homes despite the coronavirus pandemic, the holding company that includes most Ikea stores said Tuesday
Stockholm, (APP - UrduPoint / Pakistan Point News - 24th Nov, 2020 ) :Consumers continued to spend strongly to furnish their homes despite the coronavirus pandemic, the holding company that includes most Ikea stores said Tuesday.
Ingka, which includes shops that account for 90 percent of sales by the Swedish flat-pack furniture giant, suffered only a 5.0 percent drop in revenue for its September 2019-August 2020 financial year, to 37.4 billion Euros ($44.4 billion).
Net profit, however, fell by a third to 1.2 billion euros.
The drop in sales was considerably lower than one might have expected given the extent of store closures during the first wave of the pandemic.
Around three-quarters of the 378 Ikea stores owned by Ingka were closed for roughly seven weeks, which works out to a 15 percent reduction in days open for business.
But the fact that sales were down only by a third of that "proves that covid has helped us as a society to pay attention to what's important in life: health, family, love but also home," Ingka financial director Juvencio Maetzu told AFP.
Many consumers used lockdown time to work on home improvement projects or invested in creating home offices.
"Our expectation so far is that this year will be even better than the year before," Maetzu added.
While he declined to cite figures, Maetzu noted that only around a quarter of the stores are currently closed as many countries experience a second or third wave of coronavirus infections.
Ingka decided in June to forgo government aid and return any it had received, because its performance hadn't suffered considerably from the pandemic.
Present in 38 countries with a staff of 217,000 people, Ikea has a complex structure. In addition to Ingka, there is the Inter Ikea holding company, which owns the brand, controls production and receives payment from franchises.
Recent Stories
Journalists call for global action to end Gaza’s humanitarian crisis
CM for generating opportunities to bring direct int'l investment
Pakistan retains position in FTSE secondary emerging market
High Commissioner of Malaysia hosts Iftar dinner reception
NEPRA announces 2nd quarterly adjustment in power bills with Rs 1.68 cut per uni ..
Hoopo Inc. Collaborates with SAU to Install Solar-Powered RO Plant
04 killed in Spain as Storm Nelson looms
Russian military jet crashes into sea off Crimea: Governor
Rain-windstorm/thunderstorm likely at various parts of country
Implementation of Sindh Agriculture Workers Act-2019 demanded
Pandemic accord talks heading for extra time
Khawaja reiterates PM commitment to judiciary
More Stories From World
-
Bus plunges off S.Africa bridge killing 45: ministry
2 hours ago -
S.Africa's ex-president Zuma barred from May election
2 hours ago -
Tax the rich: slow progress on the international front
2 hours ago -
Bus plunges off S.Africa bridge killing 45: ministry
2 hours ago -
Russia sentences journalist to 2 years in prison, detains others
2 hours ago -
France asks for foreign help for Olympics security: officials
3 hours ago
-
04 killed in Spain as Storm Nelson looms
3 hours ago -
Russian military jet crashes into sea off Crimea: Governor
3 hours ago -
Pandemic accord talks heading for extra time
3 hours ago -
French parliament backs bill against hair discrimination affecting black women
3 hours ago -
Russia says 'evidence' links Ukraine to Moscow attack
3 hours ago -
Russian shelling kills three in Ukraine, officials say
3 hours ago