French retail giant Carrefour has cut its full-year earnings outlook. The decline in customer traffic caused by riots and higher store operating costs are reported to be weighing on results, while the EPS outlook and other metrics were also revised downward.
Carrefour cut its full-year adjusted EPS outlook from “high-single-digit growth” to “flat to modest growth,” and also lowered its targets for its ordinary operating margin, net free cash flow and capital expenditure. CEO Alexandre Bompard said the company was “facing an unprecedented situation in France” and that uncertainty over consumer spending trends and the operating environment for stores was extremely high.
The company’s ADR temporarily fell 8.5% in the New York market on the 20th. More than 500,000 people were reportedly involved in protests nationwide. Although the unrest subsided after a curfew was introduced, calls have been made for demonstrations to resume. Carrefour is said to be the first major retailer to disclose the impact of the riots.