Spanish discount grocer DIA has cut its sales forecast for 2011. France remains a "tough" market, said the retailer, with its sales falling by nearly seven per cent there.
DIA, which was spun off by French retail giant Carrefour in July, said it expected to finish 2011 with net sales growth in of more than three per cent. It had previously set a target of four per cent for the year after its nine-month like-for-like sales in France fall by 6.8 per cent. "Despite the challenging macro, DIA managed to expand the EBITDA margin by 80 basis points, which compares with our flat margin forecast," commented Espirito Santo analyst Filipe Rosa.
The discounter's share price fell as investors were concerned over its exposure to the poor economic conditions in France, Portugal and Spain. (17 Nov)
© 2011 -ESM:European Supermarket Magazine
