The key facts

  • Carrefour reported the looting of around 50 stores and operating profit losses of €80–200 million due to the protests
  • Shares fell 13.6% to €14.09 on the Paris stock exchange
  • The earnings-per-share forecast was cut from high single-digit growth to stable or slight growth

Shares plunged after profit warning

Shares of Carrefour, France's largest publicly listed retail group, fell more than 13% on Wednesday after the company warned that the protests and riots sweeping the country would reduce profits. By 10:30 a.m., the shares were trading at €14.09 on the Paris stock exchange, down 13.6%. According to AFP, around 50 stores of the chain were looted over the weekend.

Loss estimate: €80–200 million

Chief executive Alexandre Bompard told the radio station France Inter that the company expects a reduction in operating profit of €80–200 million ($90–225 million) this year. Jefferies analysts noted that this could amount to up to 60% of fourth-quarter operating profit, which usually accounts for significant revenue from Christmas shopping. In their assessment, the scale of the impact is currently 'extremely difficult' to determine precisely, and management did not clarify whether the consequences would extend into early 2027.

Forecasts revised amid weakening demand

Bompard said the company had been on track to meet its targets, but the deterioration of the social and criminal situation forced it to tell investors that the final quarter's targets could not be achieved. He added that consumer spending, especially discretionary spending over the New Year holidays, would suffer. The riots also increased the company's operating costs — this comes against a backdrop of consumer confidence already weakened by rising energy prices. Carrefour now expects adjusted earnings per share to be stable or slightly higher than last year, having cut its previous forecast of high single-digit growth.