Colruyt Shares Fall On Warning Of Difficult Year
Shares in Colruyt fell dramatically on Tuesday following earnings posted by the Belgium discount ret…Shares in Colruyt fell dramatically on Tuesday following earnings posted by the Belgium discount retailer.
Colruyt issued a warning of the difficult year ahead after posting a fall in profits.
Colruyt dropped 3.6% to a two-and-a-half month low in brisk trading.
Trading volume in the retailer was recorded at 1-1/4 times its three-month average.
The very competitive Belgian supermarket sector has become even fiercer over the past year with Ahold's Albert Heijn entering the market and German discounters Aldi and Lidl gaining market share in the country.
Bank Degroof analyst Hans D'Haese said that while Colruyt had a good strategy, the market is against them.
He also pointed out how competitors are focusing on volumes, with very low food inflation.