PARIS - Shares in Carrefour fell on Thursday after Europe's largest food retailer reported first quarter sales that showed a lacklustre performance in its core French market which overshadowed more robust growth in Brazil.
Carrefour reported that first quarter sales reached 20.239 billion euros ($22 billion), marking like-for-like growth of 3.4%, an acceleration from 0.7% sales growth in the fourth quarter of 2021.
French sales, however, were flat in the quarter, with hypermarket sales down by 1.1%.
"France was a notch below expectations, whilst the tone on outlook, whilst sensible in the current context, is unlikely to excite. Therefore, we expect to witness some travel and arrive in the shares in the short term in the context of their recent outperformance and given positioning," wrote JP Morgan's analysts on Carrefour.
"Good performance, Brazil saves the day," added Bernstein analysts, although Bernstein also noted the continued weakness at hypermarket stores in Carrefour's core French market.
(Reporting by Dominique Vidalon; Editing by Tassilo Hummel)