The Scandinavian design sector is facing significant challenges as declining revenues and profits strain even its most recognisable names. A key player in this market has reported its second consecutive year of financial downturn, marked by a drop of nearly DKK 150 million in revenue.
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This struggle reflects broader market pressures, with consumer demand slowing and competition intensifying. Among those affected is Hay, a Danish furniture company known for its modern Scandinavian designs. Founded in 2002 by Mette and Rolf Hay alongside Bestseller billionaire Troels Holch Povlsen, the company has built a reputation for functional and innovative furniture.
In the 2023/24 fiscal year, Hay's revenue fell to DKK 1.215 billion, down from DKK 1.358 billion the previous year. This follows a broader trend of financial decline, with revenues steadily decreasing from a peak of DKK 1.477 billion in 2021.
In response to falling revenue, the company implemented a savings plan, which included the closure of its Aarhus store after 17 years and its Oslo location shortly thereafter. Despite these measures, Hay has maintained its workforce, with over 200 employees on its books, though sustained pressure could force further adjustments.
Looking ahead, the company anticipates continued challenges in the 2024/25 financial year, though it expects a slight increase in demand. Revenue forecasts for the upcoming year range between DKK 1.22 billion and DKK 1.27 billion.
Source: www.wood-supply.dk