Carrefour (EU:CA) shares declined more than 11% on Wednesday after the French retail group reduced its full-year financial forecasts, citing deteriorating social and security conditions in France that have affected store operations and consumer spending.
The company reported third-quarter like-for-like sales growth of 2.3%, compared with an increase of 2.1% during the first half of 2026.
Despite the quarterly sales increase, Carrefour revised its expectations for operating profitability, earnings per share and cash generation for the full year.
The retailer now forecasts growth in its recurring operating income margin of between zero and 15 basis points, compared with its previous target of 25 basis points.
Carrefour also reduced its adjusted earnings per share guidance, now expecting broadly stable earnings or slight growth rather than the high single-digit increase previously anticipated.
The company revised its net free cash flow outlook from slight growth to a slight decline for 2026.
Management attributed the changes to recent developments in France, which have disrupted operations at a number of urban stores and created uncertainty surrounding consumer spending.
In its domestic market, Carrefour recorded third-quarter like-for-like sales growth of 1.2%, with increases across its different store formats.
The company said pricing investments made earlier in the year contributed to the French sales performance.
In Spain, like-for-like sales rose 2.1%, supported by higher sales volumes.
Brazil reported like-for-like growth of 1.4%, with the Atacadão retail format contributing to the increase.
Alexandre Bompard, Chairman and Chief Executive Officer of Carrefour, commented on the group’s quarterly trading performance and the situation affecting its French operations.
“Carrefour recorded +2.3% like-for-like sales growth in the third quarter, in line with the first half of the year, driven by food sales and the positive contribution from our core markets,” Bompard said.
“The events that have taken place in France over the last few days have affected a significant number of our stores in urban areas and have placed our teams and partners in particularly difficult situations.”
The company indicated that recent events had affected a significant number of stores in French urban areas, complicating the operating environment ahead of the year-end retail period.
Carrefour also reported an 18% increase in e-commerce sales during the third quarter, reflecting growth in its online retail activities.
The group continued expanding its convenience store network, opening 89 new locations across France and Spain during the period.
The quarterly results therefore showed increased like-for-like sales across Carrefour’s principal markets, alongside growth in online sales and further store openings.
However, the retailer’s revised financial guidance reflects its assessment of the potential effects of current operating conditions in France on profitability and cash flow during the remainder of 2026.
The reduction in its full-year targets coincided with a decline of more than 11% in Carrefour’s share price during Wednesday’s trading session.
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