IKEA Group, the world's biggest furniture retailer, said it saw positive signs in consumer spending as it posted a 5.9% rise in sales in its fiscal year 2013/14.
In the 12-month period ended August 31, sales at the Swedish flat-pack furniture giant rose to €28.7 billion. Sales in comparable stores grew 3.6% in the same period, it added.
"We continue to see positive signs in consumer spending and it's a great joy to report growth in almost all our markets, not least in the challenging markets in Southern Europe," IKEA's chief executive Peter Agnefjall said in a statement.
IKEA, seen as a good gauge of global consumption due to its vast footprint, said China was its fastest growing market while North America continued to perform well.
While the challenging economic situation may not be over in Europe - where IKEA generates nearly 70% of its sales - the region continued to improve, it said.
There are more than 300 IKEA stores globally in 26 countries. Its largest markets are Germany, the US and France.