Carrefour downgrades earnings after flat sales

AP News
Posted: Oct 13, 2011 2:45 AM
Carrefour downgrades earnings after flat sales

French retail company Carrefour SA is warning that its losses will be greater than expected for the year because of tough economic conditions.

The Paris-based superstore operator reported flat sales for the third quarter on Thursday, dragged down by weak or shrinking sales in France and the rest of Europe. Carrefour is continuing to grow in emerging markets, particularly in Latin America and China, but those gains only barely offset a poor showing in Europe, where fears of a recession and a ballooning sovereign debt crisis have hit consumer spending.

Carrefour posted sales of euro22.8 billion ($31.39 billion), up 0.3 percent, and said its full-year earnings could be down between 15 and 20 percent. It had previously said the loss would be around 15 percent.