French supermarket giant’s stock price Carrefour Shares plunged 14% on Wednesday after the company lowered its full-year profit forecast, citing the “unprecedented situation in France.”
“Given the deteriorating social and security situation, the group believes that consumption trends and business conditions in France are facing a deterioration,” the company said in its third quarter results report released late on Tuesday.
France’s cities have been in turmoil in recent days, with hundreds of thousands of protesters taking to the streets demanding more spending on public services and expressing dissatisfaction with the high cost of living. Although most demonstrators were peaceful, some protesters over the weekend looted and destroyed stores, set fire to city hall, and attacked police officers.
Carrefour now expects operating profit margin growth to be between 0 and 15 basis points, down from its previous forecast of a 25 basis point increase. The company also expects adjusted earnings per share to be flat to slightly higher than its previous forecast of low single digits, and free cash flow to decline slightly, reversing its previous forecast of moderate growth.
Supermarket giants have warned that the unprecedented disruption in France is disrupting store operations and weighing on consumer spending, which is already under pressure from rising energy costs ahead of the crucial holiday shopping season.
The stock was last seen down 14%, sitting firmly at the bottom of the stock market. STOXX 600 index.
Carrefour shares have fallen sharply after rising steadily since the start of the year.
Carrefour shares are up about 2.5% since the start of the year and remain ahead of France’s blue-chip index. CAC40down nearly 4% over the same period.
The CAC40 rose 0.2% early Wednesday, buoyed by a sharp rise in the glasses maker’s share price. Essilor Luxottica Following the third quarter results report that exceeded expectations.
Carrefour reported third-quarter underlying sales growth of 2.3% at constant exchange rates, apart from a downward revision to its 2026 forecast. That’s in line with FactSet expectations and slightly higher than the growth rate in the first six months of the year.
Sales in France were 11.9 billion euros ($13.4 billion), representing just over half of the company’s total sales. Sales in France rose 1.2% in the third quarter.
