Hornbach posts 21% drop in Q3 profit as costs outpace sales growth

Investing.com -- German DIY retailer Hornbach Holding (ETR:HBH) on Friday reported a 21% drop in third-quarter adjusted EBIT to €27.3 million, down €7.3 million from €34.6 million a year earlier, as weak consumer demand and rising costs overshadowed modest sales growth.

The retailer recorded net sales of €1.54 billion in the three months ended November 30, 2025, up 2.2% from €1.51 billion. 

For the nine-month period, sales reached €5.14 billion, a 3.8% increase from €4.95 billion.

The profit decline stemmed from like-for-like sales growing just 0.2% in the quarter while personnel costs increased 3.3% and operating expenses climbed for maintenance and IT infrastructure. 

The company said it was unable to fully offset higher costs despite gross profit rising 3% to €526.7 million.

"The consumer environment remains challenging, and a noticeable turnaround has yet to materialize," said Erich Harsch, CEO of Hornbach Baumarkt AG, in a statement. "This is also reflected in the recently subdued sales performance in Germany."

The retailer’s core Hornbach Baumarkt division, which accounts for 94% of total sales and operates 173 DIY stores across nine European countries, increased nine-month revenue by 4% to €4.85 billion, the report showed. 

German sales rose 2.1% to €2.28 billion while international sales climbed 5.8% to €2.57 billion, now representing 53.1% of the division’s revenue.

The company reported market share gains across key markets based on GfK data through October. 

Germany reached 15.7%, up 0.6 percentage points; Austria hit 17.6%, up 0.4 percentage points; Czechia climbed to 38.8%, up 1.1 percentage points; the Netherlands reached 29.1%, up 1.3 percentage points; and Switzerland rose to 15.1%, up 0.6 percentage points.

Online sales grew 8.1% to €625.2 million, accounting for 12.9% of the Baumarkt division’s total sales, up from 12.4%, the report indicated.

During the fiscal year, three new stores were opened by the retailer, two in Romania and one in Austria. 

Capital expenditure surged 55.6% to €166.8 million, driven by new construction and land purchases for future expansion.

Net income declined to €189.1 million from €198.5 million as the financial result deteriorated by €6.9 million to negative €41.8 million, reflecting lower interest income, higher interest expenses and negative currency effects, per the financial statement. Earnings per share fell to €11.39 from €11.84.

The company’s building materials division, Hornbach Baustoff Union, which operates 39 stores in southwestern Germany and France, reported nine-month sales of €291.2 million, down 1.4% from €295.4 million, reflecting weakness in Germany’s construction sector.

Hornbach maintained its full-year guidance, expecting fiscal 2025-26 sales at or slightly above €6.20 billion and adjusted EBIT at fiscal 2024-25’s level of €269.5 million.