CARREFOUR, Europe’s biggest retailer, has defied fears of another profit warning, sending its shares soaring as new management have said that while trading remains weak in austerity-hit countries such as Spain and Italy, it is not getting worse.
The French group said yesterday it was “comfortable” with the market consensus for 2012 earnings before interest and taxes of €2.03-€2.09 billion, which would mean a year-on-year profit drop of 5-8 per cent – breaking a run of downgrades.
The arrival of veteran retailer Georges Plassat in May has fuelled hopes that Carrefour can get to grips with years of underperformance in its main European markets, where its hypermarkets have been hit by specialist stores and trends towards local and online shopping.
However, Plassat faces a tough task against a weak economic backdrop. German rival Metro warned last week the crisis was hurting demand in Europe’s biggest economy.
Carrefour said second-quarter like-for-like sales dropped 1.3 per cent, dragged down by falling demand in recession-hit Italy and Spain and sluggish French hypermarket revenue.
