Investing.com -- Carrefour shares fell more than 11% on Wednesday after the French retailer cut its full-year financial targets, citing deteriorating social and security conditions in France that have disrupted store operations and consumer spending.
The company reported third-quarter sales growth of 2.3% on a like-for-like basis, compared the 2.1% increase recorded in the first half of 2026. However, Carrefour revised its 2026 guidance downward, now expecting recurring operating income margin growth of 0 to 15 basis points compared to its previous target of 25 basis points.
The company also lowered its adjusted earnings per share outlook to stable or slight growth from high single-digit growth, and now anticipates a slight decline in net free cash flow versus previous expectations of slight growth.
In France, sales increased 1.2% on a like-for-like basis in the third quarter, driven by all formats and benefiting from price investments made earlier in the year. Spain posted 2.1% like-for-like growth, supported by volume increases, while Brazil grew 1.4% on a like-for-like basis, led by the Atacadão format.
"Carrefour recorded +2.3% like-for-like sales growth in the third quarter, in line with the first half of the year, driven by food sales and the positive contribution from our core markets," said Alexandre Bompard, Chairman and CEO. "The events that have taken place in France over the last few days have affected a significant number of our stores in urban areas and have placed our teams and partners in particularly difficult situations."
The company noted that recent events in France have impacted stores in urban areas, creating uncertainty around consumer spending trends and store operating conditions as the critical year-end retail period approaches.
E-commerce sales grew 18% during the quarter, while the company opened 89 new convenience stores in France and Spain.
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