Carrefour reported a significant decline in its share price following a revised outlook announced in its third-quarter earnings report. The supermarket operator attributed the downward revision to deteriorating social and security conditions across France, which have begun affecting consumption patterns and operational efficiency.
The company substantially reduced its financial guidance across multiple metrics. Operating margin growth expectations fell to a range of 0 to 15 basis points from a previous forecast of 25 basis points. Adjusted earnings per share guidance shifted to flat to slightly higher performance, down from earlier expectations for high-single-digit growth. Additionally, the company now anticipates a slight decline in free cash flow, reversing its prior forecast for modest expansion.
Unrest in France has disrupted normal business operations and pressured consumer activity during a critical period heading into the year-end retail season. The disturbances included widespread protests involving hundreds of thousands of people expressing concerns about public service spending and living costs. Some incidents involved vandalism and looting of retail locations, arson at municipal buildings, and clashes with law enforcement.
Despite the sharp single-day decline, Carrefour shares maintained a year-to-date gain of approximately 2.5%, outperforming the CAC 40 index, which has declined nearly 4% over the same timeframe. Third-quarter comparable sales growth at constant exchange rates reached 2.3%, aligning with analyst expectations and modestly exceeding the growth rate recorded during the first half. France represented 11.9 billion euros in sales, accounting for just over half of total company revenues, with French operations posting 1.2% sales growth in the quarter.
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