Paris, June 26 - France's Carrefour on Thursday toned down its 2008 operating profit forecast and said it was confident it would grow sales -- including VAT and at constant exchange rates -- in line with the 7 percent seen in 2007, assuming no further worsening of consumer spending.
Carrefour, the world's second-largest retailer by value behind Wal-Mart Stores Inc, said it was confident it would deliver "significant growth" in operating income before non-recurring items at around the same rate as that of sales.
In May, Carrefour had forecast 2008 sales growth in a range of 6 percent to 8 percent, excluding acquisitions and at constant exchange rates. It had also forecast that growth in operating profit would be faster than sales growth.
Carrefour issued the statement after the market close on Thursday, saying it wanted to clarify comments made by its chief executive during a conference call on Wednesday.
The comments apparently prompted a sharp fall in the Carrefour stock price on Thursday.
During the call concerning an announcement on the introduction of the Carrefour Market brand to the French market, a question was asked as to whether the group confirmed its forecast for the full year.
"In response to this question, CEO Jose Luis Duran said that we would give an update with the publication of its second-quarter sales on July 9," the statement said.
Carrefour shares closed down 8.83 percent at 37.88 euros on Thursday.
"I am surprised by the market reaction. One must not mix up the economic environment, the current consumption climate, and the solid prospects of the group," Duran told French television LCI on Thursday evening.