Shares of 3i Group (LSE:III) dropped more than 4% on Thursday after the private equity investor reported a slowdown in recent sales momentum at its key portfolio company Action, although it left its broader outlook for the year unchanged.
In a trading update ahead of a capital markets seminar, 3i said Action recorded net sales of €3.7 billion during the first 12 weeks of 2026, representing year-on-year growth of 14.5%. Like-for-like sales increased by 4% over the same period.
However, more recent trading suggested a slightly softer trend. Analysts at RBC Capital Markets estimated like-for-like growth in the latest period at around 3%, which they described as “a little softer than our lower-end expectations.”
The company attributed some of the weaker performance to weather conditions in Northern Europe, noting that store traffic was “impacted by snow and cold weather,” particularly during the second reporting period. France also underperformed relative to other markets, posting like-for-like growth of 0.9% compared with 5.8% in markets outside France.
For the full year, Action continues to guide for like-for-like sales growth of between 4% and 5%, with at least 400 net new store openings and an EBITDA margin maintained at 14.8%. RBC said this guidance broadly aligns with market expectations.
Action opened 24 stores so far this year, with most additional openings expected to take place in the second quarter.
3i also increased its estimate of the long-term opportunity for Action in Europe to roughly 4,650 additional stores beyond its current footprint. The company reiterated plans to launch the brand in the south-eastern United States, targeting the first store opening by the end of 2027 or early 2028—an approach RBC said matched expectations.
Across the wider portfolio, 3i reported solid trading conditions. The group said Royal Sanders and “the vast majority of our Private Equity portfolio companies, continue to trade well. Our Infrastructure portfolio is also delivering solid overall performance.”
The company acknowledged potential geopolitical risks, noting that “the repercussions of Middle East situation have the potential to present further challenges,” but added that “history suggests that Action and the broader 3i portfolio will continue to show resilience in the most likely scenarios.”
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