The German DIY store chain Hornbach has reported a rapid increase in sales from its DIY stores and almost doubled earnings due to the coronavirus crisis. According to initial preliminary results, sales in the first quarter (1 March to 31 May 2020) have grown by 18.4% to EUR 1.492 bn. The operating earnings adjusted for non-operating impacts on earnings (adjusted EBIT) increased by around 90% to around EUR 160m.
The reason for the significant improvement in earnings is essentially the strong sales growth at home and abroad, reports the company. They state that in the course of the coronavirus crisis, customer demand in the stationary and online business has risen significantly since mid-March – also benefited by the pleasant spring weather in 2020.
The largest sales growths were achieved in May 2020 with plus 36 per cent (March 2020: minus 2 per cent; April 2020: plus 17 per cent), after all of the initially up to 64 Hornbach stores which were effected by official sales restrictions were reopened.
The German Hornbach group expects significantly higher sales and earnings in the first quarter of its financial year 2020/2021 (1 March to 31 May 2020). The measures taken to contain the coronavirus pandemic meant that up to 40% of Hornbach’s DIY stores in Germany and abroad were initially affected by far-reaching restrictions imposed on sales activities by the authorities. As the spring quarter has progressed, however, it has become apparent that these coronavirus-related losses of sales are being more than offset, and to an increasing extent, by high sales at stores that remained open or have now reopened, at online shops, and at builders’ merchant outlets, an ad-hoc announcement says. Since 6 May 2020, all Hornbach DIY stores have been accessible to customers. From a current perspective, both consolidated sales and adjusted consolidated operating earnings (adjusted EBIT) for the first quarter of the 2020/21 financial year are expected to significantly exceed the previous year’s figures.
Plus 8.1%, plus 7.8%, plus 6.6% – with these growth rates, the number five, the number one and the number three in the DIY trade European top 10 are setting themselves apart from their competitors. The German DIY store operator Hornbach increased net sales gained on its home market and abroad in the year 2019 to EUR 4.428 bn. European market leader ADEO from France reached EUR 21.379 bn, and OBI, market leader in Germany, made sales of EUR 6.866 bn. These figures have been established by Dähne Verlag for its Statistics Home Improvement Retail. The complete volume will be out in August – however the statistics experts at the German professional publisher, which specialises in the DIY and garden industry, have already published the ranking of the ten largest DIY store groups. Overall, the top 10 of the European DIY trade sector made sales of EUR 65.026 bn last year. That was EUR 2.880 bn or 4.6% more than the previous year.
Hornbach has opened its 15th outlet in the Netherlands. The new DIY store, located in Duiven, has a sales area of 16,500 sqm and features a large garden centre including a zoo department, a drive-in for building materials and a modern bathroom and kitchen centre with 3D planning. It is the first location in the province of Gelderland and also the sixth new opening in the Netherlands within five years. According to its own information, Hornbach has invested €34m in the land, construction and equipment at the location. According to press reports, Hornbach is targeting up to 25 locations in the Netherlands.
The Hornbach DIY stores outside of Germany grew in the first nine months of financial year 2019/2020 (ending 29 February 2020) significantly more strongly than on their home market. The increase in sales in European countries amounted to 9.5%; in Germany this was 7.5% more than in the comparative period. Like-for-like growth of the international stores at 8.1% also lay one percentage point over that of the Hornbach stores in Germany. Overall, the German DIY retailer made sales of €3.4993 bn in the first three quarters (€1.7821 bn at home, €1.7172 bn abroad) and thus grew by 7.8%.
Read more at www.diyinternational.com
The 157 Hornbach DIY stores as well as the German group’s online shops in nine European countries have increased their net sales in the first half of the year (ending 31 August 2019) for financial year 2019/2020 by 8.7% to €2.4447 bn. In like-for-like sales net of currency effects, the DIY and garden stores achieved a sales growth of 8.3% in the first six months. The net sales of the domestic Hornbach stores and the German online shop rose in the first half of the year 2019/20 by 7.0% to €1.2558 bn. Like-for-like sales in Germany grew by 7.4%. In the eight countries outside Germany, net sales increased by 10.5% to €1.1889 bn. The foreign portion of sales increased from 47.8% to 48.6%. Like-for-like sales net of currency effects grew in the rest of Europe by 9.2%.
On 1 January 2020, Erich Harsch (57) will take over the position of chief executive officer of Hornbach Baumarkt AG following Steffen Hornbach’s retirement. The managing director of the drugstore chain dm is no stranger to Hornbach. He has been on the supervisory board of Hornbach Baumarkt AG since July 2013. He is also a member of the supervisory boards of Hornbach Holding AG & Co. KGaA (since January 2014) and Hornbach Management AG (since October 2015). “We are happy and proud that we were able to recruit Erich Harsch as the new CEO. He is the ideal candidate for us,” says Albrecht Hornbach ceo of Hornbach Management AG. Harsch has profound experience in stationary retail as well as in the digital transformation of the industry. With his track record with the Hornbach Group, the retail expert is familiar with the business model and structures of the listed DIY store group as well as the challenges of the DIY market.
Read more at: www.baumarktmanager.de