Ikea Ireland sees profits soar despite 'challenging' economic backdrop

Furniture retailer said total retail sales rose marginally despite continued pressure on household spending

IKEA store in Ballymun, Dublin

Swedish furniture giant Ikea has welcomed a "strong financial performance" in its Irish business, with total retail sales rising marginally to €247.3m last year.

The company, which has significantly expanded its Irish footprint in recent years, said its results were achieved despite a "challenging economic backdrop," where consumer confidence remained subdued due to continued pressure on household spending.

Despite just a modest rise in total retail sales, the furniture giant's operating profit soared by 131% in the 12 months to August 2025. Ikea said the surge reflected a "return to more normalised levels of investment" after a €12m injection into a Central Distribution Centre in 2024.

Ikea now operates seven order points across Ireland, including sites in Cork, Waterford and Dublin, along with over 20 external pick-up points.

The company said its Stockholm collection, a 96-piece portfolio of Scandinavian designs, generated more than €860,000 in turnover from over 12,000 pieces sold, with its top-selling item in volume being the Stockholm brown mug.

In terms of turnover, Ikea said its top-selling item was its Alhamn beige three-seat sofa. The retailer also noted that its "commitment to addressing widespread sleep concerns" resonated strongly with Irish consumers, leading to significant uptake in sleep-related products. 

Ikea noted that 9% more pillows were sold last year, with the ‘New Lower Price' pillows seeing an 34% increase in sales. It added that the introduction of its double duvet cover became one of the highest-selling duvet covers of the year.

“Ikea Ireland’s performance last year reflects the strong connection we share with people across Ireland," said Mostafa El Garaa, interim CEO and chief sustainability officer for Ikea UK and Ireland. "Whilst we navigate a challenging economic environment, we continue to see positive results driven by the trust customers place in us.

"This positive momentum enables us to keep investing in Ireland and to further enhance the accessibility, affordability, and sustainability of IKEA for communities nationwide.”