A Norwegian furniture manufacturer, known for its Stressless and IMG brands, recorded strong growth in the UK and Ireland in the first quarter of 2025, with sales increasing by over 25 percent year-on-year.
Revenue for Ekornes in the region reached NOK 95.8 million (£6.9 million), up from NOK 75.8 million (£5.6 million) a year earlier. The company attributed the rise to continued brand loyalty and successful product launches showcased at furniture exhibitions in late 2024.
Group revenue rose 14 percent to NOK 1,114 million (£81.4 million) during the three-month period to March, supported by improved manufacturing efficiency and cost reductions. EBITDA climbed to NOK 216 million (£15.8 million), while net profit recovered to NOK 54.4 million (£4 million) from a NOK 78.3 million (£5.7 million) loss in the same period last year. Order intake rose modestly by 3 percent.
Ekornes, which is owned by China's Qumei Home Furnishings Group, reported a solid start to the year across European markets. However, it noted that newly imposed US tariffs are putting pressure on margins, especially for its IMG line, which has less pricing flexibility than the premium Stressless brand. North America currently represents about one-third of Ekornes' revenue, while two-thirds of its production remains in Norway.
To address tariff-related challenges, Ekornes stated it will raise prices and rely on its operational agility. The company is also exploring longer-term solutions, including expanding US manufacturing and reassessing its supplier network to mitigate exposure.
Ekornes maintains a positive outlook in Europe and remains committed to navigating global trade pressures through strategic adjustments.
Source: www.thefurnishingreport.com