Ikea forecasts more difficult year on supply-chain issues, store closures

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% to 1.43 billion euros ($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.