Retailer Carrefour cuts 2026 profit margin growth and cash targets due to French riots

Carrefour SA

20/10/2026 16:47

PARIS, Oct 20 (Reuters) - Carrefour CARR.PA cut its targets for operating profit margin growth and free cash flow for 2026 on Tuesday, citing a worsening social and security situation in France where last weekend's riots hit a large number of its stores while high energy costs are also weighing on consumer spending.

"Our group is facing an unprecedented situation in France. There is a high degree of uncertainty regarding consumer spending trends and the conditions under which our stores will be able to open," CEO Alexandre Bompard said in a statement.

Carrefour CARR.PA reported third quarter sales rose 2.3% slightly above expectations, as Europe's largest food retailer benefited from improving momentum in France and  Brazil.

Third quarter sales reached 22.7 billion euros ($25.5 billion), a like-for-like rise of 2.3%, slightly above a company-compiled analysts consensus of 2.1% growth. This was also an acceleration from 1.9% growth in the second quarter.

Sales in France, Carrefour's largest market, recorded a  like-for-like increase of 1.2%, helped notably by the ramp up of the Cora stores and by price cuts.
 
Carrefour said it now expected a growth in Recurring Operating Income (ROI) for 2026 with a zero to 15 basis points growth in operating margin versus 2025, instead of a 25 basis points growth previously forecast.

Carrefour said it now expected a stable to slight growth in 2026 adjusted earnings per share against a high single-digit growth previously forecast.
 
Carrefour also said it now eyed a slight decline in 2026 net free cash flow while previously expecting a slight growth

The retailer is pursuing a plan to gain market share in its core countries of France, Brazil and Spain and boost profitability through price cuts, offset by savings achieved through the expansion of its franchise model in France, as well as increased use of AI, data and technology.

($1 = 0.8899 euros)

 (Reporting by Dominique Vidalon;
Editing by Sudip Kar-Gupta)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters Messaging: dominique.vidalon.reuters.com@reuters.net))