Hornbach Confirms Fiscal-Year Guidance Despite Decrease in Third-Quarter Net Sales

By Nina Kienle

Hornbach, a leading company in the industry, remains optimistic about its fiscal-year outlook, despite experiencing a decline in net sales during the third quarter. The decrease in sales can be attributed to lower consumer spending.

According to Hornbach’s latest financial report, revenue for the quarter ended on November 30 amounted to 1.49 billion euros ($1.64 billion), representing a 4% decrease compared to the same period last year. However, the company’s earnings before interest and taxes saw a slight increase of 1.2%, reaching EUR49.5 million. Adjusted EBIT, on the other hand, experienced a decline of 1.7% to EUR48.1 million.

Despite the challenges faced during the third quarter, Hornbach stands firm in its net sales outlook for fiscal year 2024. The company expects to either maintain or surpass last year’s total revenue of EUR6.26 billion. As for the adjusted EBIT, Hornbach anticipates it to be within the range of EUR21.75 million and EUR26.1 million, with a focus on achieving results towards the lower-to-mid end of that range.

One positive aspect highlighted in the report is the company’s third-quarter gross margin, which showed improvement by 1%, reaching 33.4%. This improvement can be attributed to lower commodity and procurement prices.

Hornbach expressed its intent to increase market share in key international markets, including the Czech Republic and the Netherlands. This strategic move comes as net sales in Germany experienced a decline of 5%, totaling EUR763.9 million. Furthermore, sales in other European countries also faced a decrease of 2.9%, amounting to EUR721.3 million.

In an effort to enhance its trade offer in Germany, Hornbach successfully completed the acquisition of start-up Seniovo.