Germany's Hornbach Q2 net sales rise on strong seasonal demand

Overview

• Germany DIY retailer's Q2 net sales rose 7.3% yr/yr on strong seasonal demand

• Q2 adjusted EBIT increased 12.8% as gross profit growth offset higher costs

• Company confirms full-year guidance and continues European expansion with new store openings

Outlook

• Hornbach confirms 2026/27 net sales to be at or slightly above prior year's EUR 6.4 bln

• Company expects 2026/27 adjusted EBIT to be approximately at prior year's EUR 264.7 mln

• Hornbach sees moderate cost increases from wages and IT projects for the rest of the yr

Result Drivers

• SEASONAL DEMAND - Co said strong demand for seasonal product ranges, including air-conditioning units, shading products and irrigation solutions, drove Q2 sales growth

• STORE EXPANSION - New store openings in Slovakia and Austria and planned additions in Germany contributed to higher sales and market share gains

• GROSS PROFIT OFFSET COSTS - Sales-driven gross profit growth offset higher procurement, logistics, personnel, maintenance and IT costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home improvement products & services retailers peer group is "buy"

• Wall Street's median 12-month price target for HORNBACH Holding AG & Co KgaA is €90.00, about 7.9% above its September 28 closing price of €83.40

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)