The French housewares giant behind Tefal, Rowenta and Krups has issued its second profit warning of the year, citing sluggish demand in Europe and North America. Shares in Groupe SEB tumbled 21% to their lowest level in more than a decade.
The company now expects operating profit of between €550 million and €600 million for 2025, down sharply from the €700–€750 million range previously forecast. Sales growth is also set to be “stable to slightly positive”, rather than the 2–4% increase originally anticipated.
SEB said that shoppers in the eurozone have become more cautious, reducing spending on non-essential products such as cookware and small electrical appliances. In the United States, the company blamed a “wait and see” attitude among consumers and business clients, linked to weaker confidence and concerns about higher import tariffs.
The group raised prices earlier this year to offset rising costs linked to tariffs on imported goods. Its cookware, including Tefal pans, is mainly produced in France and other European factories, while many of its small domestic appliances are manufactured in China.
While SEB reported stronger sales in Asia and South America and highlighted several successful new product launches, these gains have not been enough to balance the downturn in Europe and North America. Western Europe accounted for around 35% of SEB’s consumer sales in 2024.
“The pace of recovery is sluggish in a number of European countries and, above all, there is persistent weakness in North America amid deteriorating consumer spending,” said Arnaud Despre, analyst at BNP Paribas Asset Management subsidiary Portzamparc.
By 8:05 a.m. GMT, SEB shares were trading at €52, down 21% and at the bottom of the pan-European STOXX 600 index. The company has now lost nearly a quarter of its market value in 2025 alone, as shifting consumer behaviour and global trade uncertainties continue to weigh on the category.
SEB had previously hoped for a rebound in the second half of the year after its July forecast downgrade, but the announcement suggests recovery is proving slower than expected.
The group, which saw demand soar during pandemic lockdowns as consumers invested in home cooking, has since seen that boom fade. The stock has fallen roughly 25% since January.
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