German DIY chain Hornbach has adjusted its full fiscal year profit forecast after its operating income was hammered in the third quarter, partially because of higher costs.
Higher costs, lower margins
Hornbach's third quarter operating income dropped 43 % to 21.3 million euro, which it attributes to higher costs but also to lower margins.
Forits fiscal year 2015/2016, it had forecast a 165.1 million euro profit before taxes, similar to its numbers from last year. According to its new forecast, this number will be considerably lower, although it will still manage an average single-digit turnover growth.
Hornbach Holding has 146 garden and DIY chains in Europe and until early 2014, Europe's largest DIY chain Kingfisher owned more than 20 % of Hornbach. It sold its stake back to the Hornbach family for 195 million pounds (233 million euro).