Inter IKEA Holding (IKEA) Q4 2024 earnings summary

Executive summary

• FY24 total IKEA retail sales reached EUR 45.1 billion, down 5.3% year-over-year (–4.0% currency adjusted).

• Store visits increased 4.5% to 899 million, while online visits rose 21% to 4.6 billion.

• Wholesale prices to retailers were reduced by an average of 10%, supporting affordability and leading to lower sales and franchise fees.

• Net profit rose to EUR 2.2 billion from EUR 1.6 billion in FY23, driven by improved financial income and lower costs.

Financial highlights

• Total revenues were EUR 26.5 billion, down from EUR 29.1 billion in FY23.

• Operating income increased to EUR 2.3 billion from EUR 2.2 billion year-over-year.

• Gross profit margin improved to 16.0% from 13.2% in FY23.

• Net income reached EUR 2.2 billion, up from EUR 1.6 billion in FY23.

• Effective tax rate increased to 17.5% from 15.8% in FY23.

Outlook and guidance

• Expansion continues with 56 new sales locations, including new markets and smaller retail formats.

• Focus remains on affordability, cost control, and supply chain resilience.

• Awaiting regulatory approval for acquisition of Baltic retail operations.