Carrefour shares plunge after profit warning on French protests
Carrefour said about 50 of its stores were looted over the weekend, potentially reducing its annual operating profit by €80 million to €200 million (US$90 million to US$225 million).
Parliamentary body Carrefour, France's largest publicly traded retailer, experienced a significant decline in its share price on Wednesday following a profit warning amid violent protests across the country. The unrest led to a drop in consumer sentiment, exacerbated by soaring energy prices, which subsequently impacted the company's operating costs.
Chief executive Alexandre Bompard revealed that around 50 Carrefour stores were looted during the weekend, resulting in an estimated 80 million to 200 million euros ($90 million to $225 million) reduction in operating profit for the year. This loss could account for up to 60% of the company's operating profit during the fourth quarter, when year-end holiday spending typically generates substantial revenue.
Bompard informed France Inter radio that the deterioration of social and security conditions had forced him to inform investors and the market that the company could no longer achieve its last quarter's targets. The violent protests have also inflated Carrefour's operating costs, coinciding with weakened consumer sentiment due to surging energy prices.
Carrefour now anticipates stable or slight growth in adjusted earnings per share compared to last year, downgrading a previous forecast of high single-digit growth. At approximately 10:30 am, the company's shares were trading 13.6% lower at 14.09 euros on the Paris stock exchange. Management was not forthcoming regarding whether these impacts would persist into early 2027.
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