Danish furniture retailer JYSK reached an EBIT result of DKK 3.96 billion (EUR 531 million) and increased its turnover by 6.3% to DKK 38.5 billion (EUR 5.2 billion) for the financial year 2022/23 (FY23).
At JYSK, it continued its expansion plans and welcomed over 1.2 million new customers to its stores despite the slowdown in the global retail market.
The financial year, which runs from 1 September to 31 August, was a challenging year for JYSK as inflation continued to rise, keeping operational costs up and affecting consumer buying power.
JYSK countered this by investing in very competitive prices and great offers for the customers on cornerstones of the business, such as garden furniture, and increased turnover to DKK 38.5 billion for FY23.
EBIT decreased 13.2% compared to the year before, partially due to weak currencies affecting some of JYSK’s biggest countries. However, compared to pre-Covid years, the EBIT result for FY23 is 5.7% higher than 2019/20, continuing the long-term upward earnings curve.
“Despite the decrease in our EBIT result this year, JYSK has stayed ahead of the decline in sales in the global home furnishing market due to our low price points and high quality products. We can all be very proud of our hard work and results for this financial year, and I want to thank all employees again for your commitment and dedication,” says President & CEO of JYSK, Rami Jensen.
During the financial year 2022/23, JYSK opened its first stores in Türkiye and further stores in the country are underway.
Overall, JYSK opened 135 new stores in FY23. On top of this, JYSK also invested in a record number of store activities, which amounted to 619 relocations and enlargements of existing stores and updates to the newest store concept 3.0. Two thirds of all JYSK stores are now redesigned with the successful new store concept.
In FY23, JYSK opened a state-of-the-art distribution centre in Hungary, which is the largest of its kind in the country and represents an investment of EUR 200 million. The distribution centre will secure a faster and more efficient internal supply chain to JYSK stores and customers.
JYSK also continued to invest in IT solutions to deliver on the “Seamless and closer to the customer” strategy through Unified Commerce, which allows the customer to start and finish orders in either the stores or webshops no matter where their buying journey started.
“Our expansion plans continue without slowing down. We plan to open at least as many stores next financial year, and we want to get even closer to our customers to ensure that we stay top of mind and relevant for their shopping needs within home furnishing,” says Rami.
The global retail market continues to be very unpredictable as customers are still hesitant and prioritising how they spend their money. However, inflation is also declining, and supply chains have normalised. Operational costs continue to be at a high level but are expected to decrease in the coming year.
“Despite the uncertainty in the world around us, we continue to focus on our long-term goal of growth and expansion. JYSK is known for our great Scandinavian offers and customers continue to choose us when they are searching for a new bed, garden furniture or home decorations and for our high level of customer service. We continue to be on the right path,” says Rami.
