LONDON, March 27, 2026, 13:07 GMT
3i Group bounced 2.9% to 2,367 pence as of 12:46 GMT Friday, recouping just a fraction of Thursday’s bruising 17.6% drop. The FTSE 100-listed private equity firm saw shares hammered after Action, its largest investment, flagged weaker 2026 guidance.
This isn’t a minor point—Action accounts for the bulk of 3i’s value. As of March 31, 2025, the retailer made up 76% of the private equity portfolio, according to the annual report. Back in January, 3i said its stake would increase to 65.3%, which leaves the parent company especially vulnerable to shifts in Action’s growth trajectory.
During Thursday’s seminar, 3i said it sees like-for-like sales at Action rising 4% to 5% in 2026, with at least 400 new stores planned and the margin holding at 14.8%. For the first 12 weeks of 2026, net sales climbed 14.5% to 3.7 billion euros, but like-for-like sales growth eased to 4.0%. Outside France, stores posted 5.8% growth, while French sales edged up just 0.9% as snow and cold hit northern European footfall.
3i slumped to its lowest point in over two years on Thursday as the selloff deepened. Barclays followed up on Friday, lowering its price target to 4,455 pence from 4,810 pence, though the broker stuck with its “overweight” call—still betting the shares will outperform the sector. Reuters
Management took the opportunity to outline Action’s long-awaited U.S. debut. The company targets its first store in the Southeast—somewhere between late 2027 and early 2028. Around 20 locations are expected to open initially, spread across North Carolina, South Carolina, and Georgia. Action plans to invest between 350 million and 400 million euros through 2030, aiming to hit about 100 U.S. stores by year-end. Chief Executive Hajir Hajji pointed to the region’s rapid growth as a key factor, saying it’s “one of the fastest growing regions.” Hajji added that Action now considers itself “strong and sizable enough” for the move, insisting the group can expand stateside without losing focus in Europe. London South East
Still, it’s a gamble. Reuters pointed out that earlier efforts by European names like Tesco and M&S to break into the U.S. market didn’t work out. 3i flagged the ongoing Middle East crisis as another possible squeeze on its holdings.
The sheer size of Action’s numbers drives the stock’s volatility. 3i reported 16 billion euros in sales from the retailer, with operating EBITDA for 2025 at 2.367 billion euros—before interest, tax, and non-cash items—and 384 net new stores. As of Dec. 31, 3i had its 62.3% stake marked at 22.38 billion pounds, using an 18.5x run-rate EBITDA multiple.
3i’s next set of full-year numbers lands in May, following Thursday’s Action seminar and portfolio update.
