PARIS (Reuters). -Shares in Carrefour (EPA:) dropped nearly 4 percent on Thursday, after Europe’s largest retailer of food reported its first quarter results. The company was down almost 4% due to a weak performance in France. Its core French market sales were disappointing and surpassed by more solid growth in Brazil.

On Wednesday, the French retailer stated that it is confident in its outlook for 2022, and confirmed a key cash flow goal for the year. However, this wasn’t enough to sustain the shares after a 26% increase so far this year.

At 0838 GMT the share price was down 3.7% and stood at 19.63 Euros.

JP Morgan analysts stated that France performed a little below what was expected, and the outlook tone in current circumstances is likely to be excite.

“In the light of recent outperformances and their given positioning, we anticipate some travel in the shares.”

Carrefour reports that the first quarter’s sales were 20.239 million euros ($22 Billion). This represents 3.4% growth compared with 0.7% growth for the fourth quarter in 2021.

French sales were however flat, and hypermarket sales fell by 1.1%.

“Whilst the potential for M&A newsflow remains…and the valuation remains undemanding at 12x FY22E EPS, we expect the shares to pause after a 26% appreciation year to date,” Citi analysts said.

Carrefour plans to increase digital commerce growth without the additional financial resources required if the two tie-ups planned for last year failed. One with Canada’s Couche-Tard, the other with France’s Auchan.

Alexandre Bompard is the Chairman and CEO. He was elected in May 2021 to a third term. His plan will be revealed in the autumn.