Inter Ikea Group total revenues in fiscal year 2025, which ended Aug. 31 — including wholesale sales to Ikea retailers, franchise fees and retail sales — were essentially flat, dropping from 26.5 billion euros last year (about $30.6 billion at press time) to 26.3 billion euros.
Total Ikea sales — product, food and services sales by franchises, the bulk of its business — fell 1% year over year to 44.6 billion euros. That decline was due to lower wholesale prices, which Ikea introduced in 2024, the company said last week.
“We view FY25 as a stable year in terms of the financial results,” Inter Ikea Group CFO Henrik Elm said in a statement. “I’m very proud of how we responded to multiple challenges to deliver a steady result in line with our overall ambitions, and that puts us in a strong position for the coming years.”
The home goods giant has worked to blunt the impact of U.S. tariffs and rising commodity prices and paid for that on the bottom line. Total operating income reached 1.7 billion euros, down by more than a quarter from 2.3 billion euros last year. Net profit fell by nearly a third to 1.5 billion euros from 2.2 billion euros last year. And gross margin shrank, though it is “back to normal levels,” per the company’s release.
“FY25 started with a downward trend in raw material and commodity prices,” the company said. “However, the uncertainties around the US announcement of trade tariffs caused volatility on commodity markets in the second half of the year.”
But those efforts also helped sales volumes in 2025 grow 2.6%, and store visits increased nearly 2%, reaching 915 million. Wholesale sales volumes grew about 6%. The company opened 66 new locations globally, including full-size stores, smaller stores and plan-and-order formats.
In fiscal 2026, Ikea will continue to keep prices of its goods and fees accessible for its franchisees and customers despite the hit to profits, according to its annual report.
“The Group intends to maintain the current level of wholesale prices to the Ikea retailers to secure stability in the franchise system and affordability for our customers,” the company said. “Moderate growth in the Group’s revenues and volumes is anticipated for FY26 and the Group expects to remain profitable.”