Carrefour lowered its 2026 profit and cash flow outlook as unrest strained its French stores and customers, sending the retailer’s shares down about 14% in Paris on Wednesday.
The supermarket group now expects its operating margin to rise by 0 to 15 basis points this year, compared with its earlier target of 25 basis points. It forecasts adjusted earnings per share to be flat to slightly higher than in 2025, replacing an expectation of high-single-digit growth. Net free cash flow is now expected to decline slightly rather than increase.
Carrefour said security and logistics costs were rising as curfews limited opening hours. The unrest affected urban stores, and Carrefour said customer visits declined in many areas. Chairman and CEO Alexandre Bompard called the conditions “an unprecedented situation in France.”
Chairman and CEO Alexandre Bompard estimated on the company’s earnings call that recurring operating income could fall €80 million to €200 million short of the previous target. Bompard said Carrefour’s network of urban convenience stores increased its exposure to the disruption.
France generated €11.9 billion in third-quarter sales, just over half of Carrefour’s total. Group sales grew 2.3% on a like-for-like basis at constant exchange rates during the quarter, before the latest disruption. Carrefour said higher energy costs were already weighing on consumers ahead of the year-end shopping period.
The company also lowered planned annual capital spending to €1.6 billion from €1.7 billion, with less investment planned in France through year-end.
Reuters reported that further demonstrations were planned for Oct. 24. Carrefour is scheduled to present its French hypermarket strategy on Nov. 17.
