Carrefour, the French big box store, posted a significant increase in profit in the first half of the year. Europe's largest retailer also said Thursday that the company's net income rose to EUR902 million. This is in stark contrast to the EUR31 million loss experienced by the company last year. The company noted the improvement as a sign that its turnaround plan is gradually coming into fruition.
Much of the EUR380 million profit boost was a financial statement adjustment stemmed from discontinued operations. According to Associated Press, this observation raised the question of whether the company can stay profitable. Investors however, showed that they have a positive outlook for the retailer, as the results far exceeded industry estimates of EUR250 million. Shares shot up to 4.2% in early trading on the Paris bourse.
Carrefour had been struggling for years and the industry saw a rapid succession of management changes. Georges Plassat took the reins as its chief executive almost a year ago, and had pledged to cut costs and staff. Plassat also laid out plans to shift the company's focus on markets where it could become a leader.
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