Shares in 3i Group dropped by over 4% on Thursday after the private equity firm flagged a slowdown in recent sales momentum at its largest portfolio asset, Action, while leaving its full-year guidance unchanged.
In a trading update issued ahead of a capital markets seminar, 3i said Action recorded net sales of 3.7 billion in the first 12 weeks of 2026, representing a 14.5% increase versus the same period a year earlier. The statement noted that like-for-like sales rose by 4% over that timeframe.
However, 3i signalled that trading had softened more recently. The group said like-for-like growth in the most recent period was implied to be around 3%. RBC Capital Markets commented that this pace was "a little softer than our lower-end expectations." The update cited weather as a factor, saying store traffic in Northern Europe was "impacted by snow and cold weather," with the effect concentrated in the second period of the reporting window.
Regional performance showed variation. France underperformed relative to other markets, with like-for-like sales up just 0.9% in the country, compared with 5.8% when France was excluded.
For the full year 2026, Action reiterated guidance for like-for-like sales growth of 4-5%, plans for net openings of at least 400 stores, and an EBITDA margin maintained at 14.8% - targets that 3i said were broadly in line with the expectations cited by RBC. Action has opened 24 stores so far in the year, with new openings skewed toward the second quarter.
3i also increased its estimate of Action's European expansion opportunity, raising the potential additional store count to about 4,650 stores on top of its existing estate. The company confirmed plans to open its first store in the southeast of the United States by the end of 2027 or in early 2028, which RBC described as as expected.
Beyond Action, 3i said that Royal Sanders and "the vast majority of our Private Equity portfolio companies" continue to trade well. The firm added that its Infrastructure portfolio is delivering "solid overall performance."
On geopolitical risk, 3i warned that "the repercussions of Middle East situation have the potential to present further challenges," while also stating that "history suggests that Action and the broader 3i portfolio will continue to show resilience in the most likely scenarios."
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