Hornbach boosts sales but higher costs impact profit

Hornbach Holding, a major player in the DIY and building materials sector, has kicked off its 2026/27 fiscal year with robust sales growth. The company benefited significantly from positive developments in construction and garden markets across Europe, according to its announcement from Bornheim.

However, the increase in revenue was accompanied by a slight dip in operating profit. Hornbach reported that its adjusted earnings before interest and taxes (EBIT) fell by 0.5% to 161 million euros in the three months ending May. This decline is attributed to escalating costs, particularly higher personnel expenses linked to the opening of new stores, as well as increased operational and material costs.

Despite these cost pressures, Hornbach management remains optimistic about the full fiscal year. The company reaffirmed its forecast, projecting sales to remain around the previous year's level of 6.4 billion euros, or potentially slightly higher. They also anticipate a broadly stable adjusted operating profit for the year, aiming to navigate the challenging cost environment while pursuing growth.

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on a good path