// Ikea profits drop in challenging year
// The homewares retailer expects sales to rise this year despite warnings
Ikea has seen its profits drop after a year of store closures led to a number of challenges.
Inter Ikea, the worldwide franchiser for the retailer, said net profit fell 17 per cent to €1.43 billion for the 12 months to August.
Chief financial officer Martin van Dam has warned of inflation and supply-chain challenges for the current financial year.
READ MORE: Ikea hands out Covid bonuses to worldwide staff
He added that supply-chain disruption creates by its definition “a disappointed consumer”.
The homewares retailer expects sales to rise this year despite the warnings.
Inter Ikea had €250 million of additional costs due to labour and transport shortages last year.
Those costs are expected to rise further this financial year.
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