Sweden's Ikea, the world's biggest furniture retailer, reported on Tuesday its fiscal full-year sales grew 7 percent to a record 34.2 billion euros ($38.4 billion).

Ikea Group, which owns most Ikea stores world-wide, said in a statement comparable stores accounted for 5 percent of growth in the 12 months through August. The year before, sales growth was 11 percent, of which comparable growth was also 5 percent.

Privately held Ikea, known for its budget home furnishing and self-assembly furniture in giant out-of-town warehouse stores, has the bulk of its business in Europe.

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"China remains one of the fastest growing markets for Ikea Group, together with Australia, Canada and Poland," the company said in a statement.

It said Germany remained its largest market, closely followed by the United States, and showed another year of record growth. Plans are on track to open the first stores in India and Serbia this year.

It said that besides 12 new stores, it opened 19 pick-up and order points in the year, and plans to further increase focus on integrating physical and digital commerce.

In June, Ikea Group Chief Executive Peter Agnefjall told Reuters he saw 2015/16 sales growth of around 8-10 percent, leaving the firm on track to reach its target of 50 billion euros in 2020.

IKEA Group is a franchisee to brand owner Inter Ikea Group. It has 340 stores in 28 countries of which 14 also has e-commerce, and it owns 41 indoor shopping malls and 25 outdoor retail spaces.

$1 = 0.8904 euros