Carrefour warns of profit hit from French riots and looting

Carrefour Cuts Profit Outlook as French Riots Raise Costs and Disrupt Trading

Impact of French Riots on Carrefour's Financial Performance

By Helen Reid and Dominique Vidalon

Revised Earnings Forecast and Financial Outlook

LONDON, Oct 20 (Reuters) - Carrefour cut its annual earnings forecast on Tuesday, blaming an "unprecedented situation" in France as riots, looting and curfews raised costs and disrupted trading at its stores.

The supermarket chain said it now expects "stable to slight" growth in 2026 adjusted earnings per share, having previously forecast growth in a high single-digit percentage. It also forecast a slight decline in free cash flow compared with 2025.

Consumer Confidence and Store Footfall

Carrefour said the unrest was hurting consumer confidence that was already weak owing to high fuel prices and is reducing footfall at its stores as the key fourth-quarter trading period begins.

Direct Costs and Store Closures

"The direct costs add up to several tens of millions of euros ... of stolen or destroyed merchandise, damaged stores, damaged equipment, and then there are also the stores we were forced to close," Carrefour finance chief Matthieu Malige told reporters.

"In the weeks to come we will continue to be impacted as some stores have to close earlier due to curfews, and more broadly we think we're in a new situation marked by deep uncertainty for our customers."

Malige said that 50 Carrefour stores were directly hit by the riots and that many more were closed in anticipation of unrest, including on Sunday and Monday. He declined to give a total number of stores shut.

Increased Costs and Reduced Investment

Costs have increased as stores took measures to protect themselves, including the hiring of external security guards, Malige said. 

As a result, Carrefour said it would invest less in France, cutting its capital expenditure forecast for the year to €1.6 billion ($1.80 billion) from €1.7 billion. 

Upcoming Sales Events

The retailer had been gearing up to begin its Black Friday sales events in the coming days, Malige added.

($1 = 0.8904 euros)

(Reporting by Helen Reid and Dominique VidalonEditing by Mark Potter and David Goodman)