Retail giant Carrefour struggles in China, France

AFP, PARIS: France's biggest retailer Carrefour reported lower profits yesterday as it struggled in China and in its French home market where cut-throat competition weighed on margins.
Its 2016 operating performance improved in the rest of Europe and in Latin America, but not enough to prevent net profit from falling 24 per cent to 746 million euros ($785 million).
One-off tax changes were to blame for much of the fall, but stripped of exceptional items net earnings were still down 7.4 per cent, the retailer said in a statement.
Net profit on ordinary operations fell 3.8 per cent, in the ballpark of analyst expectations.
In Asia, ongoing operations produced a loss of 58 million euros, compared to a profit of 13 million the previous year, mostly due to weakness in China. Carrefour said it is looking to revamp its business model in that market.
Carrefour's performance in its French home market, meanwhile, suffered from weak consumer spending and massive competitive pressures from rivals slashing prices to gain market share. Profit on operations fell 13.4 per cent in France.
Investors were disappointed in Carrefour's French performance, giving the results a "lukewarm reception", analysts at Bryan Garnier said in a note.
Carrefour's shares dropped more than four per cent to 21.76 euros in early business in Paris.
The company's French results translated "a worsening in the competitive environment for French hypers", Bryan Garnier said.

Retail giant Carrefour struggles in China, France

AFP, PARIS: Frances biggest retailer Carrefour reported lower profits yesterday as it struggled in China and in its French home market where cut-throat competition weighed on margins. Its 2016 operating performance improved in the rest of Europe and in Latin America, but not enough to prevent net profit from falling 24 per cent to 746 million euros ($785 million). One-off tax changes were to blame for much of the fall, but stripped of exceptional items net earnings were still down 7.4 per cent, the retailer said in a statement. Net profit on ordinary operations fell 3.8 per cent, in the ballpark of analyst expectations. In Asia, ongoing operations produced a loss of 58 million euros, compared to a profit of 13 million the previous year, mostly due to weakness in China. Carrefour said it is looking to revamp its business model in that market. Carrefours performance in its French home market, meanwhile, suffered from weak consumer spending and massive competitive pressures from rivals slashing prices to gain market share. Profit on operations fell 13.4 per cent in France. Investors were disappointed in Carrefours French performance, giving the results a lukewarm reception, analysts at Bryan Garnier said in a note. Carrefours shares dropped more than four per cent to 21.76 euros in early business in Paris. The companys French results translated a worsening in the competitive environment for French hypers, Bryan Garnier said.