SEB Shares Plunge 22% as Profit Forecast Slashed Amid Weak European and U.S. Demand

Shares of French cookware maker SEB, the parent company of Tefal, Rowenta, and Krups, dropped over 22% in early Paris trading after the group sharply cut its annual profit and sales forecast. The company cited sluggish demand in Europe and cautious spending behavior among U.S. consumers and business clients as major reasons for the downgrade.

SEB now expects its 2024 operating profit to fall between €550 million and €600 million (approximately $703 million), down from its previous forecast of €700 million to €750 million. The group also warned that sales growth in 2025 will likely remain stable to slightly positive, a downgrade from its earlier 2% to 4% growth projection.

The slowdown reflects broader consumer trends across the eurozone. A recent European Central Bank survey revealed reduced spending on non-essential goods, while French consumer confidence has sunk to its lowest level in nearly two years. SEB noted that while demand in Asia and South America remains strong and recent product launches have performed well, these positives have failed to offset declining sales in Western markets. In 2024, Western Europe accounted for 35% of SEB’s total consumer sales.

The company anticipates a slight decline in third-quarter sales, scheduled for release on October 23, marking another setback after an earlier forecast reduction in July. Despite expectations of a rebound in the second half of the year, U.S. import tariffs and weaker-than-expected consumer demand have continued to weigh on results.

SEB’s stock, which saw strong gains during the pandemic due to increased home cooking, has now lost around 25% of its value since the start of 2025, reflecting growing investor concerns over the group’s performance amid challenging global market conditions.