Norwegian furniture manufacturer Ekornes, owner of the Stressless brand, has reported a decline in second quarter sales with the UK market softening.
According to its latest trading update, second quarter 2025 operating revenues came in at NOK 942 million, down 3% from the second quarter 2024 mainly on a weaker development for IMG. Compared to the first quarter 2025, revenues decreased 15% on the impact from US trade tariffs, a weaker USD versus the NOK and seasonal impact.
Revenues from Stressless®, representing 76% of Group revenues, ended at NOK 717 million during the quarter, marginally down from the corresponding period last year. Revenues from IMG were down 13% to NOK 165 million, with the discovery brand being more affected by macro volatility. Svane® was marginally up from last year, ending at NOK 60 million for the quarter.
Operating earnings (EBIT) for the quarter came in at NOK 32 million (53), corresponding to an EBIT margin of 3.4%. This compares to 5.5% in the second quarter 2024 and 12.4% in the previous quarter. The change from last year mainly reflects higher marketing investments.
“The European markets recorded a softer quarter for both Stressless® and IMG. Central Europe struggled as German demand deteriorated amid muted macro conditions and lower store traffic,” the company said.
“After a robust first quarter, the UK softened, with tariff-related market volatility and slower economic growth weighing on consumer spending. In response, Ekornes remains focused on optimizing its UK distribution strategy and pursuing the roll-out of renewed IMG studio concepts to reposition the brand.”
UK and Ireland sales were down from NOK 84 million to NOK 68.4 million, while year-to-date revenues rose from NOK 159.7 million to NOK 164.2 million.
As for the first half year 2025, total operating revenues came in at NOK 2 056 million, up 6% from NOK 1 948 million in the corresponding period in 2024, driven by increased delivered volumes and higher product prices.
Underlying revenue from Stressless® ended at NOK 1 562 million during the period, up 7% from the corresponding period last year. Revenues from IMG were down 1% to NOK 371 million, while revenues from Svane® were up 3% from last year, ending at NOK 123 million for the first six months of the year.
Commenting on the performance, Ekornes said: “After a strong first quarter with revenue growth and improved profitability, the second quarter started off with increased volatility and large regulatory uncertainties caused by the US tariffs introduced in the beginning of April.
“The order intake also showed a particularly weak April as retailers became hesitant to place orders, before sales gradually recovered through June. Developments to date in the third quarter indicate a continued sideways trend, and markets are expected to remain volatile going forward.
“Ekornes maintains a solid financial position with cash holdings of NOK 910 million and a leverage ratio well below covenant requirements. This provides financial flexibility to support ongoing strategic initiatives, as well as preparing the company for a refinancing and optimization of its capital structure in the coming quarters.
“In parallel, the strategic transformation of Ekornes is progressing according to plan. Modernizing the organization continues with a new matrix structure launched in June, designed to drive efficiency, strengthen collaboration and foster innovation across brands and markets.
“Combined with continued product portfolio optimization, brand modernization and targeted operational improvements, these initiatives reinforce Ekornes’ competitiveness and position the company to create long-term value as the preferred furniture producer for Nordic quality, comfort and style.”
Tine Hammernes Leopold, CEO of Ekornes, added: “Our operating model is resilient, delivering solid financial performance also under challenging market conditions. Regulatory uncertainty persists with rapidly changing trading conditions and low visibility. However, leveraging Ekornes’ track record of navigating uncertainty, we will continue to adapt as required, utilizing our international footprint to strengthen competitiveness and flexibility across markets.”
