According to the annual report of Ikea AB, the parent company for Ikea’s operations in Sweden, the company’s earnings are down by half.
The report, recently submitted to the Swedish Companies Registration Office (Bolagsverket), shows that Ikea AB profits for the 2008/2009 fiscal year, which runs through the end of August, amounted to 1.1 billion kronor ($294 million) after financial items, down from 2.1 billion kronor the year before.
According to the company, the steep slide in profits is a result of a weak krona, which resulted in higher purchasing costs for the company’s retail operations.
“Currency effects have made their mark,” Ylva Magnusson, a spokesperson at Ikea Svenska Försäljnings AB, which manages the company’s retail and internet commerce, told the TT news agency.
“We’re very happy and proud that things went as well as they did under the circumstances we’ve seen in the market during the past year.”
Over the course of the year, the 17 Ikea stores in Sweden had around 32 million visitors, roughly the same number as the prior fiscal year.