Carrefour cut key profitability targets for the year as it expects the violent protests that are gripping France to hit consumer spending in the run-up to the key holiday season.
The French grocer said its recurring operating profit margin could grow up to 15 basis points this year from 2.6% in 2025, below a prior forecast that it could grow more than 25 basis points. It also projects stable to slight growth in adjusted earnings per share compared with previous guidance of high single-digit growth. Net free cash flow should decline slightly compared with its prior outlook of slight growth.
France is grappling with some of the worst riots in recent memory. Weeks of student-led protests over conditions in the country's schools morphed into a broader movement that drew people of all ages protesting the rising cost of living.
Rioters rampaged through cities across France over the weekend, with authorities reporting episodes of vandalism, arson, looting and damaged stores. French Prime Minister Sebastien Lecornu instructed local officials to impose partial curfews in a bid to quell the violence.
Carrefour said the protests were making it harder for some of its stores in urban areas to operate. Chief Executive Alexandre Bompard said the group was facing an unprecedented situation in France and spoke of a high degree of uncertainty about consumer spending as the company enters the end-of-year period that is crucial for retailers.
The company said lower customer footfall, reduced store opening hours due to curfews and higher operating costs for security and logistics had forced it to trim its guidance for the year.
The group reported third-quarter sales of 22.69 billion euros, equivalent to $25.44 billion, up 2.3% on a like-for-like basis. Analysts had forecast 22.75 billion euros in sales, according to Visible Alpha. Sales in France, Carrefour's domestic market, grew 1.2% like-for-like to 11.90 billion euros, accounting for the lion's share of the company's top line.
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