Ikea Profits Fall 32% Amid Price Cuts and US Tariffs

STOCKHOLM – Ikea reported a 32% drop in annual profit to €1.5 billion for the 2024–2025 fiscal year, citing major price reductions and higher costs from US tariffs. Chief Financial Officer Henrik Elm said the company allocated up to €3 billion to cut prices by 10% over the past two years to boost sales and customer traffic. While overall sales slipped 1% to €44.6 billion, sales volume rose 2.6% and store visitors increased 1.9%.

Ikea Profits Fall

Operating profit fell 26% to €1.7 billion due to lower margins and higher sourcing expenses. Ikea said tariffs imposed by the US had partly absorbed the additional costs. Despite challenges, Elm expressed cautious optimism for 2026, citing strong market positioning and improved product availability. Founded in 1943, the Swedish furniture giant remains privately held and began publishing limited financial results in 2010 after criticism of tax transparency.

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