STOCKS NEWS EUROPE-Colruyt hits 7-mth low after profit warning

Shares in Colruyt (Brussels: COLR.BR - news) drop to a seven-month low after the Belgian supermarkets group forecasts its net profit will be slightly lower than a year earlier from a previous forecast of flat and says that its market share dipped in the Oct-Dec period.

Colruyt shares fall as much as 9.4 percent to 38.115 euros, their lowest point since June 26, and are the worst performers in the FTSEurofirst 300 index of leading European stocks. The STOXX 600 retail index is off 0.2 percent, with Casino (Paris: FR0000125585 - news) and Delhaize also weak.

KBC Securities, which has a "reduce" rating on the stock, says it has reduced its 2013/14 net profit to 342 million euros ($461.2 million) from 369 million. Colruyt reported 360 million euros in the year to the end of March 2013.

"Colruyt is trading at a premium of 33-40 percent versus the European peers. We consider this excessive given the lack of earnings growth," the broker writes in a morning note.

It adds that it prefers Delhaize (at "accumulate") because it believes the new chief executive will announce drastic measures to improve sales and return on capital employed this year, while Dutch peer Ahold (Amsterdam: AH.AS - news) (at "hold") is struggling to keep its market share in the Netherlands and said the first half of 2014 will be tough. Reuters messaging rm://philip.blenkinsop.thomsonreuters.com@reuters.net ($1 = 0.7415 euros)