For the financial year 2021/22, JYSK reached its highest EBIT result to date of DKK 4.56 billion (EUR 612 million) and increased turnover by 11% to DKK 36.2 billion (EUR 4.87 billion). However, 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. I am very impressed by all the dedication and hard work that has been and continues to be delivered,” says President & CEO of JYSK, Jan Bøgh.
Support for Ukrainian colleagues
Most significantly during the year, Russia invaded Ukraine in February 2022. JYSK’s main focus was to secure the health and safety of its employees and 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.
JYSK continues expansion strategy
Despite the current global uncertainties with rising costs, lack of materials and scarcity of staff, JYSK stays 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 in the webshops. Furthermore, JYSK continues to invest in updating and re-arranging stores to deliver great offers to customers with its new store concept 3.0.
And in spring of 2023, JYSK will also welcome customers in a new JYSK country for the first time in four years, when the retail chain 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. 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,” says Jan Bøgh.
Expectations for 2022/23
Due to the global challenges of the war in Ukraine, rising costs and inflation, JYSK saw the first signs of the 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 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,” says Jan Bøgh.
FY22 in numbers
- Turnover: DKK 36.2 billion (EUR 4.87 billion)
- Growth in turnover: 11%
- EBIT: DKK 4.56 billion (EUR 612 million) against DKK 4.54 billion (EUR 610 million) in 2020/21
- Number of new stores: 135
- Number of new customers: 7.7 million