Hornbach targets increased earnings

The German DIY store operator Hornbach is targeting sales growth in the mid-single-digit percentage range and a significantly above-average increase in adjusted operating earnings (EBIT) for the current financial year 2019/2020 (1 March 2019 to 29 February 2020). This intention was made clear at the company's financial statement press conference in Munich.The company was not satisfied with its profit performance in fiscal 2018/2019. "Unfortunately we were not able to convert customer success into increased profits," commented Albrecht Hornbach. Adjusted for non-operational extraordinary items, EBIT declined in the last financial year by 18.6 per cent to EUR 134.9 mio. In the Hornbach Baumarkt AG division the EBIT declined by 25.6 per cent to EUR 81.9 mio.As already reported in March, the Hornbach Group increased its net sales by 5.3 per cent to EUR 4.362 bn. The DIY store division likewise increased sales by 5.3 per cent to EUR 4.096 bn. Online retailing, which links Hornbach to its bricks and mortar DIY business to create so-called Interconnected Retail (ICR), experienced double-digit growth compared with the previous year to contribute to the group's sales performance.