Ikea profits take a hit from tariffs, affordability effort

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Ikea profits take a hit from tariffs, affordability effort
 
Published Friday, November 21, 2025 11:00 am
by Daphne Howland

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"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.

 

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Ikea profits take a hit from tariffs, affordability effort | Retail Dive

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Ikea profits take a hit from tariffs, affordability effort | Retail Dive

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Ikea profits take a hit from tariffs, affordability effort

IKEA's net profit fell nearly one-third to 1.5 billion euros from 2.2 billion euros in fiscal year 2025, as the company absorbed the impact of U.S. tariffs and rising commodity prices while maintaining lower prices for franchisees and customers. Total revenues remained essentially flat at 26.3 billion euros, with total IKEA sales declining 1% to 44.6 billion euros due to lower wholesale prices introduced in 2024. Despite the profit decline, sales volumes grew 2.6% and store visits increased nearly 2%, reaching 915 million, as the company opened 66 new locations globally. IKEA plans to maintain current wholesale price levels in fiscal 2026 to ensure stability and affordability despite continued pressure on profitability.