Carrefour shares are lower Thursday, after the French retailer posted a net loss for 2017. It also warned 2018 profits could be hit by a number of issues, including the currency rate exchange and expected one-off charges.
By 1230 BST, Carrefour shares were 6.17% lower at €17.78. That’s the lowest level for the stock since mid-January.
Carrefour’s earnings details showed the world’s second largest retailer behind Wal-Mart, posted a net loss of €531 million in 2017, compared with a €746 million profit in 2016.
Total sales at the French business rose 3% in 2017, to €88.2 billion. Like-for-like sales growth, meanwhile, was 1.6% in 2017, down from the 3% in 2016.
“The 2017 results that we are presenting today demonstrate the necessity of implementing without delay Carrefour’s transformation plan,” said Carrefour’s CEO Alexandre Bompard. “The Group is fully focused on the Carrefour 2022 plan.
“With this plan, whose ambition is to make Carrefour the leader of the food transition and build an omnichannel universe of reference, Carrefour is back on the offensive and is investing to resume growth,” Bompard added.
CEO adds detail on transformation plan
According to a transcript of the Carrefour earnings call from Seeking Alpha, Bompard discussed details of the retailer’s new plan.
“2018 is the first year of our five-year plan and the pivotal year in the transformation we are initiating,” Bompard told listeners. “My attention is now 100% devoted to executing our Transformation Plan.”
The CEO also confirmed the group’s ambition required a real change of its company model in order to grow sales volumes throughout its stores and other channels.
Specifically, Carrefour is working on improving its competitiveness and “building an omni-channel model of reference as we are absolutely convinced that customers will be seeking more and more a retailer that offers full and integrated omni-channel offer,” Bompard said.