A Norwegian furniture manufacturer has reported a 9% decline in fourth-quarter sales, with operating revenues falling to NOK 1,018 million compared to the same period in 2023. The company attributed the drop to weaker consumer spending, economic challenges in Central and Southern Europe, and a temporary production halt at one of its facilities. However, revenues were up 19% from the third quarter due to seasonal demand.
Photo: Ekornes.
Ekornes, owner of the Stressless brand, saw its core product account for 74% of group revenues, generating NOK 754 million, down 9% year-on-year. Sales of its IMG brand fell by 14% to NOK 194 million, while Svane revenues remained stable at NOK 70 million. UK and Ireland sales dropped from NOK 113.5 million to NOK 82.3 million in Q4 but showed slight annual growth.
For the full year 2024, Ekornes reported total revenues of NOK 3,819 million, a 9% decline from 2023. Operating earnings (EBIT) increased from NOK 105 million in 2023 to NOK 155 million, driven by cost control and pricing adjustments. The company described the UK market as a "bright spot," with Stressless gaining market share despite overall sector declines.
North America remained its largest market, performing steadily despite retailers managing high inventory levels. In Europe, Central markets struggled due to economic uncertainty, particularly in Germany, where recessionary pressures continued to impact consumer confidence.
Looking ahead, Ekornes plans to enhance customer engagement through improved in-store experiences and targeted market initiatives. CEO Tine Hammernes Leopold stated that the company enters 2025 in a "solid position" with "increased flexibility" to adapt to market conditions while maintaining profitability.
Source: www.bigfurnituregroup.com