Shares of the French retail giant plummeted after the company lowered its forecast amid protests

Shares of the French supermarket chain Carrefour fell nearly 13% during trading on October 21 after the company lowered its annual profit forecast, citing an “unprecedented situation” in France.

"Given the deteriorating social and security situation, the group believes that consumer trends and business conditions in France are taking a turn for the worse," according to Carrefour's third-quarter report, released yesterday evening.

The retail giant now expects its operating margin to grow by only 0–15 basis points, instead of the 25 points previously projected. According to the new forecast, adjusted earnings per share will remain flat or increase only slightly, whereas the retailer had previously anticipated growth of 7–9%. Free cash flow is expected to decline slightly, although the company had previously forecast moderate growth.

Carrefour, which is France's second-largest supermarket chain, has revised its financial guidance downward after mass riots, clashes with police, vandalism, and looting broke out on October 17 in many cities, including Paris, amid protests against the rising cost of living. According to Carrefour, about 50 of its stores were affected. To stabilize the situation, a partial curfew has been imposed in some French cities, forcing stores to close early. Carrefour has preliminarily estimated the damage—resulting from stolen or destroyed merchandise, damage to stores and equipment, and unscheduled closures—at tens of millions of euros.

The current sell-off in Carrefour shares was preceded by a prolonged period of growth: as of October 21, Carrefour shares had gained nearly 15% year-to-date, outperforming the main French index, the CAC 40, which had lost nearly 4% over the same period. The CAC 40 itself rose 0.2% at the start of Wednesday’s session: the market was buoyed by shares of eyewear manufacturer EssilorLuxottica following a third-quarter report that exceeded expectations.

This article was AI-translated and verified by a human editor