Casino reported Q4 revenue below our expectations. Management has lowered FY17 profitability guidance due to weak non-food sales in France and higher than expected expenses. We believe French profitability will remain under pressure as competition between retailers is likely to intensify in the coming quarters. LatAm performance should improve gradually as the impact of food deflation is estimated to normalise in 2018. We have revised our estimates downwards. No change in stock recommendation
05 Feb 2018
Weaker quarterly performance; competition set to intensify further
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Weaker quarterly performance; competition set to intensify further
Casino, Guichard-Perrachon SA (CO:PAR) | 0 0 0.8% | Mkt Cap: 5,066m
- Published:
05 Feb 2018 -
Author:
Nishant Choudhary -
Pages:
3
Casino reported Q4 revenue below our expectations. Management has lowered FY17 profitability guidance due to weak non-food sales in France and higher than expected expenses. We believe French profitability will remain under pressure as competition between retailers is likely to intensify in the coming quarters. LatAm performance should improve gradually as the impact of food deflation is estimated to normalise in 2018. We have revised our estimates downwards. No change in stock recommendation