19 May 2024, 21:33
By Furniture News Nov 24, 2022

JYSK delivers record results and plans to enter new territory

For the financial year 2021/22, JYSK reached its highest EBIT result to date of DKK4.56b (€612m) and increased turnover by +11% to DKK36.2b (€4.87b).

However, JYSK says the retail chain is now seeing the first signs of a slowdown in sales due to global challenges.

JYSK continued to successfully deliver on its business strategy of financial growth and expansion for its financial year 2021/22, which runs from September to August, with increased sales, store expansions and rearrangements, as well as increased customer visits.

“It has been yet another very challenging year, but everyone in JYSK can be very proud of our results. Whether in stores, distribution centres or offices, all colleagues have contributed to our continued success," says the president and CEO of JYSK, Jan Bøgh. "I am very impressed by all the dedication and hard work that has been and continues to be delivered.”

When Russia invaded Ukraine in February, JYSK’s main focus was to secure the health and safety of its employees, and it temporarily closed its 86 stores in Ukraine. At the same time, JYSK closed its business in Russia, and as a consequence of the war, JYSK has had to permanently close 30 stores in Russia, Belarus and Ukraine.

Despite the current global uncertainties, with rising costs, lack of materials and scarcity of staff, JYSK says it remains on track with its fundamental business model of continued expansions. In 2021/22 JYSK opened a total of 135 new stores across Europe, and welcomed an additional 7.7 million customers, both in stores and online. Furthermore, JYSK continues to invest in updating and rearranging stores in line with its new store concept 3.0.

In spring 2023, JYSK will also welcome customers in a new country for the first time in four years, when it opens its first stores in Turkey.

“With all that is going on in the world today, I did consider for a moment if we should postpone our plans," says Jan. "But that is not the spirit of JYSK or of our founder. Will it be difficult? Yes, but I believe that our great offers within Scandinavian sleeping and living will again secure our successful expansion into Turkey, as it has in so many other countries.” 

JYSK saw the first signs of an expected slowdown in sales during the summer months, and an increase in costs such as utilities in stores, distribution centres and offices. 

“Customer buying power is under pressure," says Jan, "and they are no longer forward buying as they were during the last couple of years, as they are having to prioritise even more where they spend their money in the coming months. Therefore, I expect to see a slowdown in our sales that will be reflected in our results for our financial year 2022/23." 

Roni Tuominen, country manager, JYSK Ireland and UK, adds that growth in his markets has also been strong, enjoying a turnover of €97m (+40.1%), with eight new stores, serving a customer base of 1.76 million.

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