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Here’s Why Carrefour Share Price Dropped Today Despite Sales Beat

Practice Stock Trading
Updated: 28 October 2020

Shares of Carrefour (EPA: CA) dropped nearly 3% on Wednesday on reports that French authorities are considering national lockdown after observing a worrying trend of rising new coronavirus cases.

“We have to prepare for difficult decisions,” Interior Minister Gerald Darmanin told France Inter radio.

“At some point we have to make hard choices… as our neighbours have,” he said after new measures were introduced in Italy, Spain and elsewhere in Europe.

Carrefour share price fell despite reporting that group sales came in at 19.7 billion euros, which represents an 8.4% increase on a like-for-like basis. Sales were mostly boosted by its food e-commerce unit, which grew more than 65%.

Sales in France rose 3.8% to 9.68 billion euros and together with Spain and Brazil helped drive sales higher.

The French retail giant doubled down on its 2022 plan, which is based on the decrease of the hypermarket sales area and opening of 2,700 convenience stores.

Moreover, Carrefour is pushing to meet its 2022 goals of 4.2 billion euros in food-e-commerce and 4.8 billion in sales of organic products.

Carrefour share price fell on potential national lockdown measure October 2020

Carrefour share price trades at 13.25, which is over 2.5% lower on the day.

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