Finance
Biggest IKEA retailer reports profit rise as it tries to sway budget-conscious buyers
Published by Global Banking & Finance Review®
Posted on November 11, 2025
2 min readLast updated: January 21, 2026
Home > Finance > Biggest IKEA retailer reports profit rise as it tries to sway budget-conscious buyers
Quick Summary
IKEA's largest retailer, Ingka Group, reports a profit rise despite economic challenges, with a focus on keeping prices low and absorbing tariff costs.
IKEA's Largest Retailer Sees Profit Growth Amid Economic Challenges
By Greta Rosen Fondahn and Helen Reid
STOCKHOLM/LONDON (Reuters) -The world's biggest retailer of IKEA furniture reported a rise in annual profit on Tuesday, while it tries to bring back cash-strapped consumers, and said it had raised prices in the U.S. less than competitors as it absorbs some tariff costs.
In what the budget retailer said had been a year marked by economic uncertainty, supply-chain challenges, and cost-of-living pressures, its revenue fell slightly to 41.45 billion euros ($48.34 billion), from 41.85 billion the previous year.
"Five years of cumulative inflation in society for many people ... it's a massive pressure for people to come to the end of the month," said Juvencio Maeztu, CEO of the largest IKEA franchisee Ingka Group, in an interview with Reuters.
But the amount of products sold in the financial year ending August 31 increased 1.6%, footfall was up 1.3% and online visits rose 4.6%, as IKEA stuck to a strategy of keeping prices low to attract cash-strapped consumers and gain market share.
Ingka reported an operating profit of 1.46 billion euros, up from 1.25 billion in 2024, while net profit rose to 1.41 billion euros from 0.81 billion a year ago.
Last year's results were impacted negatively by IKEA's exit from Russia, said Maeztu, who took over the CEO role at privately held Ingka Group in November. The retailer has also worked to operate stores more efficiently, he added.
INCREASES U.S. PRICES LESS THAN PEERS
While IKEA has cut prices overall, higher U.S. tariffs have forced it to increase prices on some products in the United States, which it imports from factories in Europe and China.
Maeztu said IKEA had increased prices less than its competitors in the U.S., however, adding that it had decided to absorb part of the tariff costs.
Last week Inter IKEA, which supplies furniture to IKEA stores around the world, said its annual operating profit dropped 26% as the impact of U.S. tariffs drove up costs.
The U.S. is IKEA's second-biggest market after Germany, with Ingka making about 12.6% of its sales in the U.S. in the 2025 financial year.
($1 = 0.8575 euro)
(Reporting by Greta Rosen Fondahn in Stockholm and Helen Reid in London; Editing by Matthew LewisEditing by Matthew Lewis)
Key Takeaways
- •IKEA's largest retailer reports profit growth.
- •Revenue slightly fell to 41.45 billion euros.
- •Ingka Group's operating profit increased to 1.46 billion euros.
- •IKEA raised U.S. prices less than competitors.
- •IKEA's strategy focuses on keeping prices low.
Frequently Asked Questions about Biggest IKEA retailer reports profit rise as it tries to sway budget-conscious buyers
1What is operating profit?
Operating profit is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of the company's operations.
2What is net profit?
Net profit is the total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue. It indicates the overall profitability of the business.
3What is revenue?
Revenue is the total income generated by a company from its business activities, usually from the sale of goods and services before any expenses are deducted.
4What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).