Carrefour, the world's second-largest retailer after Wal-Mart, on Thursday said profits dropped 15.6 percent last year because of divestments of unprofitable operations, but predicted better times ahead.
PARIS — Carrefour, the world's second-largest retailer after Wal-Mart, on Thursday said profits dropped 15.6 percent last year because of divestments of unprofitable operations, but predicted better times ahead.
The company said net profit declined to 1.44 billion euros, or $1.79 billion, from 1.7 billion euros, or $2.11 billion, in 2004 as it sold non-core businesses as part of a restructuring effort. Before divestments, net profits would have increased 1.2 percent, the firm said.
Carrefour chairman Jose-Luis Duran said results would improve this year and voiced "confidence" the group would better compete at home in France, where Carrefour has suffered from low-cost competition and aggressive price wars.
French retailers have sailed choppy seas recently as consumers spend less and sour on the outlook of an economy in which unemployment is double that of the U.S.
Duran said operating income would increase this year and sales would grow faster than in 2005. He said over the next couple of years, Carrefour would reach double-digit growth in operating income and sales.
Last year, the group's sales rose 2.5 percent to 74.49 billion euros, or $92.77 billion. Currency conversions were made at average exchange rates.
Meanwhile, Duran said the firm would allocate about 10 billion euros, or $19.3 billion, in capital investments over the next two years to open stores and build the Carrefour brand.
This year, for instance, some 100 hypermarkets are earmarked to open — more than twice as many on average than over the last four years. In total, Carrefour said it would open more than 1,000 stores this year.
Carrefour stock climbed 5.1 percent to close at 42.30 euros, or $50.34, in trading on the Paris Bourse.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast