Carrefour reported 22.6bn euros in sales for the third quarter which came in roughly in line with the 22.4bn consensus estimate. This number is, according to Baader Bank, "on a first glance, not as bad as expected" though the broker is wary of the underlying figures.

These analysts note that the sales number is "driven notably by Latin America and petrol sales" and point out that like-for-like sales (excluding petrol and currency effects) actually fell in three out of four of the regions in which the group operates.

They quote the French retailer's statement about "continued pressure on consumption in southern Europe" and feel it "confirms our view about an unfavorable retail trading environment in Europe". Along these lines they note that French hypermarkets "disappointed again" with a 3.3% drop in sales, while both Spain and Italy were "down significantly".

"Due to unchanged structural problems of the group, we confirm our sell rating", they conclude and also maintain the price target at €15.

Despite the negative analysis, Carrefour currently leads the advancers on the CAC 40 as it trades up 4.38% to €16.69.

JM

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