IKEA has recorded a marked deterioration in its financial results, which the company attributes to rising customs duties, more expensive raw materials and its own strategy of sharp price cuts, which is now ending. In the financial year ended August 31, net profit fell by 32%, to EUR 1.5 billion, which corresponds to approximately USD 1.73 billion. The Swedish brand, associated with affordability for years, is at a turning point. Now, in order to defend margins, it will have to pass on part of the increase in costs to customers more often.
