German DIY group Hornbach is seeing a further decline in demand in the DIY market, while costs are rising. Supermarkets and discounters are increasingly taking market share, the chain says.
Slight sales growth, sharp drop in profits
Hornbach sales rose by 2.2 % to 1.54 billion euros in the third quarter. This was not enough to fully offset the higher costs, so adjusted operating profit (EBIT) plummeted by 21 % to 27.3 million euros. Hornbach pointed to a broad decline in the DIY market, where supermarkets and non-food discounters continue to gain market share.
