Carrefour grew comparable sales excluding fuel and calendar effects by just 0.4% in 1Q18, compared with 1.9% growth in the final quarter of 2017.
At constant exchange rates, total sales were up 2.6% in 1Q18. The depreciation of the Brazilian real impacted total sales as reported, which were down 2.4%.
Management pointed to adverse weather negatively impacting nonfood ranges and hypermarket formats in Europe. Brazil continued to see sharp food-price deflation. The company also noted sustained strong competitive pressures across its main markets.
The company pointed to progress in its Carrefour 2022 turnaround plan:
The company issued no guidance for FY18 other than noting a capital expenditure target of €2 billion and an expectation that depreciation charges will increase. For FY18, analysts expect the company to grow revenues by 0.3%, to €79.1 billion, and for EBIT to fall by 3.8%. The consensus estimate calls for unadjusted net income of €623 million in FY18 versus a net loss of €531 million in FY17.