Reflecting a patchy third quarter of 2018 across the sector, Hornbach is the latest company to announce an unexpected drop in earnings.
According to initial, preliminary figures for the quarter, operating earnings excluding non-operating items (adjusted EBIT) at the DIY stores fell by around 67 per cent compared with Q3 in the previous year to just under EUR 4 mio. The group attributes this reduction primarily to the unsatisfactory earnings performance in November 2018.
Although consolidated sales – DIY stores, building materials and holding company – improved by 7.5 per cent to EUR 1.006 bn in the third quarter, the increase in gross profit did not match the growth in sales. This was due to the rise in procurement prices, which could not be offset by higher retail prices in the competitive environment. At the same time, the sales forecast continues to envisage growth in the medium single-digit percentage range.
Source: DIY International, https://www.diyinternational.com