Norwegian furniture manufacturer Ekornes, owner of the Stressless brand, has reported a growth in third quarter sales, while the UK market suffered a slight reduction in performance but remained stable.
According to its latest trading update for Q3 2022, total group sales rose 9% to NOK 1,132 million (£94.1m), with Ekornes experiencing sales growth across its Stressless and IMG markets, up 9% to NOK 851 million (£72.2m) and 18% to NOK 218 million (£18.5m) respectively.
Group earnings before tax for the quarter ended at NOK 57.7 million (£4.9m), down from NOK 84.1 million (£7.1m) in Q2. Meanwhile, order receipts were down 15% from Q2 to NOK 886 million (£75.2m) due to ‘easing demand and a generally lower pace in the industry’.
UK and Ireland sales resulted at NOK 81.3m (£6.9m), down 4.1% from NOK 85m (£7.2m) against the same quarter period last year, while up 4.5% from NOK 77.8m (£6.6m) on the Q2 2022.
Commenting on its Stressless brand in Europe, Ekornes said: “Third quarter sales in Europe came in at a stable, high level, where particularly Central Europe and the UK remain ahead of 2021 levels for the first nine months of the year. The European markets have been heavily impacted by macroeconomic uncertainties arising from the war in Ukraine combined with soaring energy prices which are reducing consumers’ disposable income. Still, sales of Stressless® have normalized on levels well above 2019 sales, although behind the elevated demand experienced during the pandemic.
“The wide product offering of Stressless® is a key success factor in the European markets, where classic recliners posted stable sales accompanied by growing demand for power sofas. In addition, Stressless® Dining maintains its positive development with strong growth as the rollout of the collection to other markets continues. To further optimize operational efficiency, Ekornes continued to utilise IMG capacity for the most labour-intensive processes, such as the assembly of Stressless® power sofas. This resulted in reduced lead times, supporting stable and reliable deliveries in the quarter.”