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Investing.com -- Carrefour’s third-quarter sales growth slowed largely due to macro headwinds in Brazil, though the retailer maintained its 2025 financial targets. Still, shares in the European retailer slid more than 3% on Thursday.
The company on Wednesday said sales reached €22.6 billion ($26.36 billion), up 2.1% on a like-for-like (LFL) basis, down from 4.4% in the second quarter. The revenue matched some market expectations.
In France, sales rose 0.7% year on year, slowing from 2.1% in the previous quarter. The weaker performance reflected price cuts at recently acquired Cora stores and tougher comparables from the 2024 Paris Olympics.
Carrefour said it will fund price reductions through a €1.2 billion cost-saving plan in 2025.
In Brazil, growth slowed to 1.1% from 4.4% in the second quarter as high interest rates weighed on consumption, particularly in the cash-and-carry segment.
"Carrefour’s Q3 revenue came in slightly below expectations, mainly due to macro weakness in Brazil," Kepler Cheuvreux analyst François Digard said in a note. "Activity in France, however, confirmed its recovery, supported by the announcement of a 30bps market share gain in September."
"The stock trades at nearly a 50% discount to Ahold Delhaize, which we believe is unjustified," he added.
Carrefour reaffirmed its 2025 targets for slight growth in EBITDA, recurring operating income, and net free cash flow.
(Pratyush Thakur contributed to this report.)