FRANCE: Non-food lines push Carrefour Q4 sales up 10%
French retail giant Carrefour has posted a 10.2% jump in fourth quarter sales, helped by a growing contribution from non-food lines like apparel, and confirmed its guidance for a higher operating profit for 2007.
The world's second largest retailer, which has stores across the globe, said fourth-quarter sales rose to EUR25.6bn (US$37.7bn), with like-for-like sales up 4.2% to EUR25.6bn.
For fiscal 2007, sales rose 6.9% to EUR92.3bn, from EUR86.3bn in 2006, with like-for-like sales climbing 1.8% to EUR92.3bn.
In Carrefour's main French market - which accounts for 45% of the retailer's revenue - fourth quarter sales rose 4.0% to EUR11.4bn. Non-food sales were up 0.5% it said, adding that within this, overall apparel sales "were slightly down."
But it said the 25 stores that have been converted to the non-food model, selling general merchandise and consumer electronics, continued to outperform the chain average by 3% to 5%.
Sales in the rest of Europe rose 1.6% on a same-store basis with rising revenue in Spain offsetting falling sales in Italy and Belgium.
Carrefour's Latin American business weighed in with a 9.8% increase in sales, thanks to growth across Brazil, Argentina and Colombia.
In Asia, like-for-like sales rose 2.8%, with the fastest growth coming from China, were sales jumped 8%.
The company expects its sales to grow 6% to 8% in 2008 with operating profits rising faster than sales.
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