FRANKFURT (dpa-AFX) - Statements about an expected weak first quarter at Hornbach Holding weighed on the DIY group's share price on Tuesday. Moreover, in view of inflation, which is having an impact on consumer behavior, and the sluggishness in the real estate market, the holding company's business is not expected to perform particularly well in the foreseeable future, it said.

At the end of the SDax, Hornbach shares were down almost 7 percent at 70.70 euros. At times, the share had fallen back to its interim low, which it had reached at the end of March at 69.10 euros.

Hornbach Holding had published its final business figures for 2022/23 and forecast stagnating sales and operating earnings for the new financial year, possibly down by up to 15 percent. At the same time, the dividend is to remain stable at 2.40 euros per share.

Traders referred in particular to management's statements on operating earnings, which are expected to be significantly weaker, especially in the first quarter. In addition, one criticized the dividend proposal, as 2.50 euros had previously been expected on the market.

"Everything has an end, and so do the positive one-off effects from the Corona pandemic at Hornbach Holding," commented market expert Andreas Lipkow. He added that the activities of DIY enthusiasts had declined significantly in recent months and that, in addition, higher prices due to the inflation trend were putting pressure on consumer sentiment. "A trend reversal is not to be expected in the foreseeable future," which is why investors are currently continuing to distance themselves from Hornbach shares or are reducing their holdings.

DZ Bank analyst Thomas Maul saw both positives and negatives in the figures. Hornbach had gained market share in all regions and further increased its sales area productivity. By contrast, however, higher procurement prices and freight costs, as well as increased store and personnel expenses, coupled with the company's permanent low price strategy, had led to a significant decline in operating earnings (EBIT). According to his statements, the dividend was in line with expectations.

Looking ahead to the new financial year underway, he recalled that Hornbach had already had to lower its EBIT forecast in the past financial year just a few weeks after announcing it for the first time. "Alongside the weather-related subdued start to the important spring quarter and the uncertainties in the macroeconomic environment, this is likely to explain the cautious formulation of the EBIT outlook for the new financialIn view of the management commentary," he now wrote that while the company is aiming for adjusted EBIT for 2023/24 to match the previous year's level, a decline of 5 to 15 percent cannot be ruled out./ck/nas/jha/