The DIY market is weakening, as Hornbach admitted earlier. The German DIY store group still recorded slight sales growth in the third quarter, but rising costs are weighing heavily on the bottom line.
Expansion costs profits
Following earlier signs of declining demand in the DIY market, Hornbach confirms in its final figures that profitability in particular is under pressure. The German group points to significantly higher personnel costs, rising operating expenses, and additional costs due to new store openings. In a market with increasing price pressure, the group can only pass on these costs to a limited extent.
