Carrefour suffers unexpectedly huge losses

The French supermarket giant Carrefour amassed 249 million euro in the last six months, far worse than analysts had expected – even after repeated profit warnings they had expected a 31 million euro profit. Chairman Lars Olofsson has subsequently lowered the expecttions for 2011 by 15%.



Even though Carrefour's sales were on the up in the emerging markets, Carrefour again led massive losses in its home market France, where its achievements were called “unsatisfying”. Not only its shrinking French market share, but higher purchasing costs too did nothing good for the French retailing giant. The net result was also weighed down by one-off charges of 884 million euro – 516 million of which caused by the Italian branch. Carrefour's operating profit went down 22% to 772 million.



“We have tried to do too much too quickly”, admitted CEO Olofsson, who admitted that Carrefour's performance was “disappointing”, partly due to economic circumstances – but also due to Carrefour's own mistakes. In November, Olofsson celebrates his three years in charge of the world's second supermarket chain. This analyst predicts that it will not be a very fun party...



The French supermarket giant Carrefour amassed 249 million euro in the last six months, far worse than analysts had expected – even after repeated profit warnings they had expected a 31 million euro profit. Chairman Lars Olofsson has subsequently lowered the expecttions for 2011 by 15%.



Even though Carrefour's sales were on the up in the emerging markets, Carrefour again led massive losses in its home market France, where its achievements were called “unsatisfying”. Not only its shrinking French market share, but higher purchasing costs too did nothing good for the French retailing giant. The net result was also weighed down by one-off charges of 884 million euro – 516 million of which caused by the Italian branch. Carrefour's operating profit went down 22% to 772 million.



“We have tried to do too much too quickly”, admitted CEO Olofsson, who admitted that Carrefour's performance was “disappointing”, partly due to economic circumstances – but also due to Carrefour's own mistakes. In November, Olofsson celebrates his three years in charge of the world's second supermarket chain. This analyst predicts that it will not be a very fun party...



Questions or comments? Please feel free to contact the editors


Turnover and profit increase for Inditex

16/06/2017

Spanish fashion group Inditex experienced a strong first quarter, with a 14 % turnover increase to 5.569 billion euro and an 18 % profit increase to 654 million euro.

Ice-Watch is looking for a partner

14/06/2017

Belgian watch company Ice-Watch is for sale, although owner Jean-Pierre Lutgen is currently looking for a minority shareholder, preferably someone from the industry.

Saks OFF 5TH to arrive in the Netherlands this summer

12/06/2017

American fashion store chain Saks OFF 5TH did not miss its European debut: hundreds of customers waited in line for the opening of its store in Düsseldorf. A first store in the Netherlands will follow later this summer.

Intersport invests in online branch

09/06/2017

Sports chain Intersport will invest more in eCommerce in the next few years, to catch up to its competitors. By 2020, it should generate a “substantial part of its turnover online”.

SuitSupply’s turnover grows a fifth

08/06/2017

Clothing chain Suitsupply’s turnover grew 19 % to 207 million euro in the past fiscal year. The holding company did suffer a 2.6 million euro loss, mainly because of high financing costs.

Yoox Net-a-Porter no longer sells fur

07/06/2017

Yoox Net-a-Porter will no longer sell fur products on any of its platforms. Animal rights organization Fur Free Alliance will now place the company on its Fur Free Retailer list.

Back to top