Amsterdam, June 24 - Dutch supermarket group Super De Boer stuck to its 2008 sales target on Tuesday despite lower second-quarter sales growth which pushed its shares down.
Super De Boer, the Netherlands' second biggest food retailer by sales after Ahold and majority-owned by French peer Casino said its second-quarter sales were hit by one-off items, not a slowing economy, and it remains on track to make more than 2 billion euros in sales this year.
"There is no reason to believe we will lower our sales expectations this year," CEO Jan Brouwer told Reuters in an interview. The firm achieved sales of 2.1 billion euros in 2007.
"At this moment we expect 2008 like-for-like sales growth at at least the same level as last year," Brouwer said. "We haven't seen any decreased consumer spending."
Government think-tank CPB forecast economic growth of 2.25 percent this year due to the credit crisis, easing from a 7-year high of 3.5 percent in 2007.
Super De Boer shares ended 7.5 percent lower at 3.44 euros after earlier hitting a 5-month low at 3.35 euros after the retailer said second-quarter sales growth at stores open at least a year was 1.5 percent versus 5.4 percent a year ago.
The stock is up 0.9 percent since the start of the year, outperforming a 16 percent lower small-cap index.
"Based on six-month figures and second-quarter results, Super De Boer is on track with its growth plan," said ABN AMRO analyst Justin Scarborough, adding second-quarter sales were in line with his expectations.
The supermarket group completed a key restructuring last year by selling loss-making stores and streamlining its distribution and logistics facilities.
Second-quarter sales growth was reduced by the Easter holidays falling in the first quarter this year, said Brouwer.
"That had a 2 percent effect," he said. He said last year's strong growth rate was also boosted by two promotional campaigns.
He said consumers have yet to trade down to cheaper items despite rising food prices, with the retailer cutting prices to help offset the impact.
"We have lowered the prices of 2,500-3,000 items in our stores," Brouwer said.