The German Hornbach group expects significantly higher sales and earnings in the first quarter of its financial year 2020/2021 (1 March to 31 May 2020).
The measures taken to contain the coronavirus pandemic meant that up to 40 per cent of Hornbach’s DIY stores in Germany and abroad were initially affected by far-reaching restrictions imposed on sales activities by the authorities. As the spring quarter has progressed, however, it has become apparent that these coronavirus-related losses of sales are being more than offset, and to an increasing extent, by high sales at stores that remained open or have now reopened, at online shops, and at builders’ merchant outlets, an ad-hoc announcement says. Since 6 May 2020, all Hornbach DIY stores have been accessible to customers. From a current perspective, both consolidated sales and adjusted consolidated operating earnings (adjusted EBIT) for the first quarter of the 2020/21 financial year are expected to significantly exceed the previous year’s figures.
Given the implications of the coronavirus crisis, which remain difficult to predict, the board of management nevertheless sees significant macroeconomic risks for the remaining nine months of the 2020/21 financial year. These are expected to impact negatively on the group’s sales and earnings performance in the further course of the financial year. The board of management therefore deems it likely that full-year consolidated sales in 2020/21 will roughly match the figure for the 2019/20 financial year (EUR 4.7 billion) and that consolidated operating earnings adjusted for non-operating earnings items (adjusted EBIT) will fall slightly short of the previous year.
Source: DIY International, https://www.diyinternational.com