Carrefour shares drop after guidance cut on France riots

By Reuters News

Oct 21 (Reuters) - Shares in Carrefour CARR.PA fell in early trading on Wednesday after the French retailer cut its annual earnings target, warning that riots and looting in France could reduce operating income by as much as €200 million ($224 million).

The stock was down around 10% as of 0726 GMT, the weakest performer both on the Paris blue-chip .FCHI and the wider pan-European STOXX 600 .STOXX indices.

It was on track for its biggest one-day decline since March 2020.

The company lowered its full-year earnings outlook on Tuesday, citing higher costs and store disruptions linked to recent unrest in France. Chief Financial Officer Matthieu Malige said the total impact could amount to between €80 million and €200 million of operating income.

Analysts said the downgrade raised questions whether the group's challenges were confined to France.

JPMorgan said in a note the update highlighted "a lack of underlying momentum" across Carrefour's key markets, pointing to weak volumes in France, Spain and Brazil.


($1 = 0.8913 euros)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.