Ekornes

Scandinavian upholstery manufacturer Ekornes ASA, owners of the renowned Stressless label, has reported a decline in UK sales in its third quarter trading update.

According to its Q3 results, total revenues in the UK and Ireland fell by 13.7% to £4.4m from £5.1m over the same period in 2015. Despite the annual drop, sales did improve by 18.9% from its Q2 result of £3.7m.

Despite the upturn on a quarter-to-quarter comparison, sales for the year-to-date were down by 6.1% to £13.7m compared to £14.6m at the same time last year.

In overall terms, Ekornes posted a 7.1% decline in sales to NOK 712.8m from NOK 767.4m in Q3 last year, with net earnings resulting in a growth of 90% to NOK 99.6m for the quarter.

Ekornes said that the downturn in operating revenues was largely attributable to a reduction in Stressless sales, with revenues down by 12% on last year, mainly in its core markets of Norway, the UK and both central and southern Europe.

Looking ahead, the group outlined plans to streamline its logistics processes to improve efficiency and profitability, with its programme aimed to cut costs by NOK 150m by the close of 2016.

Ekornes also indicated that it plans to produce its new LegComfort system within its Stressless chairs moving into the fourth quarter of this year.