Ikea Announces Financial Results For the First Time
For the first time, the privately owned Swedish furniture retailer, Ikea Group, has disclosed its financial resultsj, and the news is good. The company's fiscal year revenue jumped 7.7% from a year ago -- an impressive feat during tough economic times.
The reason for the growth? It comes from Ikea's strategy of reinvesting profits from 2009 to open up new stores around the world. The 67 year-old company currently runs 280 stores in 26 countries.
Ikea, which is operated by a foundation controlled by founder Ingvar Kamprad, has been a hit around the world for its low cost, stylish furniture, which generally requires assembly.
Why Report Results Now?
The retailer reported that sales for the year ended Aug. 31 came in at about $31.8 billion, up from about $30 billion a year earlier. The company, which will publish its most recent fiscal year's earnings at a later date, said profit for the year ended Aug. 31, 2009, increased 11.3% from a year earlier to about $3.44 billion.
Why would a privately held company suddenly start to report its financial results? According to its CEO, the information is important for its employees, other companies that do business with Ikea and for its suppliers.