Fnac Darty plunges Stock Exchange after announcement of a decline in sales due to the movement of 'yellow vests'

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REUTERS / Alessandro Bianchi

The group Fnac Darty sees its share price fall on the Paris Stock Exchange, Thursday, January 10, after having announced the day before to assess at 45 million euros the impact of the movement of “Vests yellow “on its sales in France and Belgium.

“This impact on end-of-year sales should weigh accordingly on the growth of current operating income expected for 2018,” the management said in a statement sent to AFP.

The activity of the distributor of cultural and household goods is usually important during the Christmas and New Year period. In the third quarter of 2017, it had achieved 2.44 billion euros in sales on an annual turnover of nearly 7.45 billion euros.

At 10am on Thursday, the title Fnac Darty dives 4.60% to 55.95 euros.

Share price Fnac Darty, at 10am Thursday, January 10, 2019. Investing

The group had to close stores because of the violence, like those of the Champs-Elysées, the Halles or the Ternes in Paris, when others have had their access blocked.

In the wake of these announcements, the US merchant bank Bryan Garnier and the British financial institution HSBC both lowered their price targets on the Fnac Darty value.

“Most is focused on the very profitable month of December and we doubt that Fnac Darty managed to adjust its cost structure in such a short time and protect its margins in the last month of the year “, explain Bryan analysts Garnier in a note obtained by Reuters

The distributor is not the only one to be affected by the “Yellow Vests” demonstrations. INSEE said Thursday that industrial production in France fell 1.3% in November, after rising 1.3% in October. A much more marked decline than expected

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