* Q4 sales up 0.7 percent to 25.74 bln euros
* 2008 sales up 5.7 percent to 97.56 bln euros * Q4 underlying sales fall in all regions, except Lat Am
* Q4 same-store French hypermarket sales ex-fuel dn 3.3 pct
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By Mark Potter
LONDON, Jan 15 (Reuters) - Carrefour, the world's second-biggest retailer, posted a steep slowdown in fourth-quarter sales growth, hit by weakness in its French hypermarkets business and in other European countries.
The French group, which employs around 490,000 people in more than 15,000 stores across 30 countries, said on Thursday sales reached 25.74 billion euros ($33.8 billion) in the final three months of 2008.
Forecasts ranged from 25.3 billion euros to 26 billion euros in a Reuters poll of seven analysts.
Full-year sales were up 5.7 percent at 97.56 billion euros.
"Carrefour can and should further improve its performance," new Chief Executive Lars Olofsson said in a statement.
Retailers worldwide are struggling in an economic downturn. Both Carrefour and U.S. rival Wal-Mart, the world's biggest retailer, have issued profit warnings in recent weeks.
Discounters have fared better than most as shoppers look to save money, while sellers of expensive or non-essential items have been hardest hit.
France's Casino and Portugal's Jeronimo Martins both met fourth-quarter sales forecasts on Wednesday as their discount and international businesses offset weaker performances at their hypermarkets, which sell more discretionary goods.
Carrefour said sales at stores open at least a year fell 1.3 percent in the fourth quarter, with declines of 2.4 percent in France, 3.5 percent in other European countries and 5.1 percent in Asia. Latin America grew 11.1 percent on the same basis.
Like-for-like sales at French hypermarkets were down 3.3 percent, excluding petrol.
Carrefour reaffirmed its guidance, reduced at its December profit warning, for a small rise in 2008 earnings.
Olofsson, former head of marketing at Swiss food group Nestle, started work as Carrefour's chief executive officer earlier this month.
Carrefour shares have underperformed the DJ Stoxx European Retail Index by 30 percent over the past year. They closed earlier down 1.5 percent at 25.96 euros, valuing the business at about 18.5 billion euros. (Additional reporting by James Regan in Paris; Reporting by Mark Potter; Editing by Sharon Lindores)
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