Ikea forecasts more difficult year

STOCKHOLM. Swedish home-furnishings giant Ikea forecast a more difficult year after reporting lower profit due to logistics logjams and store closures.

Inter Ikea, the worldwide franchiser for the brand, said Wednesday that net income fell 17 per cent to €1.43 billion ($1.7 billion) in the 12 months through August. Chief Financial Officer Martin van Dam said this year will be more challenging amid inflation in raw material prices and supply-chain challenges. The biggest problem is that IKEA’s growth is being crimped because the company can’t meet demand, van Dam said.

“Supply-chain disruption creates by its definition a disappointed consumer,” the CFO said in an interview. The company forecasts sales will increase this year, though at a slower rate than in the past.