Belgian retailer Delhaize has today (18 July) announced changes to its 2008 forecast, due to the 'continued weakening of the consumer environment', while also revealing its preliminary second quarter results.

The group has reported that net profit is expected to grow between 15-20 per cent for the full year, a downwards revision on the original prediction of a 25-30 per cent increase, with revenues now forecast to grow between 3-4.5 per cent as oppose to an initial prediction of a 4-5.5 per cent rise.

For the second quarter of the year, the group announced that it is expecting revenues of approximately €4.5bn, a 7.5 per cent year-on-year drop at actual exchange rates, with comparable stores sales growth projected to be 1.9 per cent in the US and 0.7 per cent in Belgium. Operating profit is expected to fall 22 per cent to €194m.

'In this challenging environment, we remain focused on reinforcing our store concepts and execution, supported by our experienced management teams and strong profitability and balance sheet,' said group CEO Pierre-Olivier Beckers in a statement. 'While the current environment requires us to address short-term market challenges, we remain focused on our long-term strategic commitments.'

Topics