Carrefour SA, France’s largest retailer, reported higher first-half earnings and maintained its full-year outlook as European revenue held up despite bad weather.
Recurring operating income rose 5.3 percent at constant exchange rates to 706 million euros ($781 million), the eighth straight increase, Boulogne-Billancourt-based Carrefour said Thursday in a statement. Analysts predicted 683.5 million euros, the average of six estimates compiled by Bloomberg.
Net sales rose 2.9 percent to 36.3 billion euros, matching the average estimate. Sales in Europe were stable, hurt by “a sluggish consumption environment,” while emerging market revenue rose 10 percent.
The company maintained its full-year outlook for higher free cash flow and investments between 2.5 billion euros and 2.6 billion euros. In April, Chief Financial Officer Pierre-Jean Sivignon said the 2.5 billion-euro profit expected by analysts is reasonable.
Competition in its home market, losses in China and deteriorating economic conditions in Europe and Brazil have hurt Carrefour shares. The stock has lost 23 percent in the past year, underperforming the 17 percent drop in the Stoxx 600 Retail Index.
First-half profit above expectations will improve confidence in Chief Executive Officer Georges Plassat’s plan to turn around the business by modernizing stores and adding collection points for online orders in France.
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