HORNBACH (HBH) Q1 2027 earnings summary

Executive summary

• Net sales increased by 4.9% year-over-year to €2,002.4 million in Q1 2026/27, with May being the strongest month ever and strong performance in European DIY stores.

• Like-for-like sales grew 2.8%, outperforming the DIY sector, especially in international markets.

• E-commerce sales rose 9%, raising the online share to 13.6% of total sales.

• Market share expanded in Germany and across Europe, with notable gains in Czechia, Netherlands, and Slovakia.

• Expansion continued with a new store in Slovakia and further openings planned in Austria, Netherlands, and entry into Serbia.

Financial highlights

• Gross profit increased by 4.0% to €699.9 million; gross margin at 35.0% (down from 35.2%).

• Adjusted EBIT was nearly flat at €161.0 million (-0.5% year-over-year); margin at 8.0%.

• Free cash flow after CapEx and dividends was €143.0 million, down from €147.4 million year-over-year.

• Operating cash flow rose to €198.9 million, fully covering CAPEX requirements.

• Net financial debt decreased to €1,224 million, leverage ratio improved to 2.5x.

Outlook and guidance

• Full-year 2026/27 guidance confirmed: net sales expected at or slightly above €6.4 billion, adjusted EBIT roughly at prior-year level.

• CapEx will be significantly above last year, supporting expansion and entry into Serbia.

• Store openings planned in Slovakia, Austria, Netherlands, and Serbia.

• Guidance reflects ongoing macroeconomic and geopolitical uncertainties.

• Operating cash flow remains solid, supporting continued organic expansion.