Ikea US parent Ikea Group posted 2016 fiscal year net income of 4.2 billion euros, or about $4.46 billion, up 20% over the previous year.

Total revenue for the Swedish home furnishings giant for the year ended Aug. 31, jumped 7.4% to $35.1 billion euros, or $37.3 million.

The company attributed its healthy profit to strong sales last year and noted China remains on of its fastest growing markets, while its top sales volume countries were Germany, the U.S., France, United Kingdom and Sweden.

“With the aim of becoming the world’s leading home furnishing multi-channel retailer, Ikea Group is expanding and developing new capabilities in in-store and online shopping to cater to people’s ever changing needs,” the company said in a release.

Ikea opened 12 new stores and 19 new format “pick-up and order” points during the year. On Dec. 14, Top 100 company Ikea US it will open its 43rd U.S. store, a 271,000-square-foot showroom in Memphis, Tenn.

The retail also said another 1 billion euros (about US$1.06 billion) was set aside for its ongoing sustainability efforts and 444 million euros (US$470.1 million) is going to employee profit sharing and bonus programs.

“Growth and profitability give us the freedom to choose our own way, the flexibility to move fast and the independence to think and invest long term,” said Peter Agnefjäll, Ikea Group president and CEO. “We are in a good place, and we have an exciting journey ahead with a strong focus on continuous growth and efficiency in our operations.”

“We want to offer our customers a great experience at every touch point, whether it is online or in-store,” he added. “We cannot do this without our dedicated and professional co-workers, who have contributed to making (fiscal 2016) a fantastic year for the Ikea group." He added that’s why the company has made the additional profit sharing and bonus program contributions.

Ikea also announced this week an expansion of its paid leave policy for parents bringing home new children.

(Source: Furniture Today  Author: Clint Engel)