Ekornes has announced the highlights of its Q3 results, showing that the company has remained resilient, in spite of challenging market conditions.
Operating revenue was at NOK 852 million, down 11% year-over-year, reflecting lower sales volumes across all segments. Net cash flow was at NOK 26 million (down from NOK 94 million last year), primarily due to lower released working capital. Order intake was at NOK 889 million, a 1% increase year-over-year.
During this period, the Morganton, North Carolina facility was temporarily closed due to flood damage from Hurricane Helene, with some sofa deliveries delayed into 2025, affecting fourth-quarter revenues.
Despite a challenging market environment with lower consumer spending on household items and furniture due to high living costs, Ekornes showed resilience. Sales were stronger in Norway and the UK, while performance varied across other regions like North America and Asia-Pacific. The Stressless® and Svane® brands demonstrated better performance compared to IMG, which saw a decline.
Photo: Ekornes.
Ekornes has adapted to the post-pandemic market by streamlining operations, controlling costs, and optimising its product portfolio. These actions, along with targeted marketing campaigns focusing on high-margin products, led to improved profitability compared to the first half of 2024.
The company's order intake saw an uptick in September, continuing into early Q4, signalling a slight market improvement. Despite ongoing challenges, Ekornes enters the historically stronger fourth quarter with a solid order reserve.
Future outlook and strategy
Ekornes maintains a strong financial position with substantial cash reserves and flexibility. The company continues to focus on its resilient business model, despite softer market conditions. By modernising organisational structures, optimising supply chains, and enhancing product quality, Ekornes is well-positioned to navigate ongoing market volatility and deliver relevant products worldwide.
More information:
Ekornes
www.ekornes.com