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Carrefour's sales mixed


Carrefour's sales mixed


Carrefour said sales were mixed in Europe during the summer but demand is holding up in emerging markets.

The world’s second largest retailer also confirmed it expected operating profit to rise this year to around 3.1 billion euros.

In the first six months operating profit rose 7.6 percent helped by tight cost controls and growth in developing countries.

Chief Financial Officer Pierre Bouchut said sales trends at Carrefour were “rather satisfactory” in Europe in July but “slightly disappointing” in August while demand was sustained in emerging markets.

“Although figures were in line with expectations, comments from the CFO about the European summer sales took the shine off and it looks as though whilst the French business may be improving, some of Carrefour’s other key markets are deteriorating,” said analyst Caroline Gulliver at Execution Noble.

Carrefour has launched a three-year overhaul plan aimed at tackling underperformance in its main western European markets and delivering 4.5 billion euros of savings.

The French group, which has over 15,500 stores in 35 countries, achieved cost savings of 236 million in the first half, nearly half the 500 million targeted for the full year.

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