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Yet another profit warning from Carrefour

Yet another profit warning from Carrefour
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French supermarket giant Carrefour is warning its profit for last year will be near the low end of already pessimistic forecasts.

Europe’s biggest retailer may also delay the revamp of its hypermarkets — known as Carrefour Planet — a move that was supposed to turn around years of underperformance.

It is the latest top European retailers to warn business is getting tougher — Britain’s Tesco and Germany’s Metro have said the same.

The potential delay to the rollout of Carrefour Planet piles further pressure on Chief Executive Lars Olofsson, already seen as being on borrowed time after six profit warnings in a little more than a year and a string of high-level management departures and strategy U-turns.

Carrefour finance chief Pierre-Jean Sivignon said the group would provide a detailed update on Carrefour Planet with its annual results on March 8. He said the stores’ outperformance against non-converted hypermarkets was less pronounced in France than in Belgium and Spain.

Carrefour, with more than 9,500 stores in 32 countries, said emerging markets remained a source of growth, with sales at Brazilian stores open over a year rising 4.6 percent