UPDATE 2-China row overshadows Carrefour Q1 sales

(Adds details, background, management quotes)

By Astrid Wendlandt

PARIS, May 13 (Reuters) - France's Carrefour SA (CARR.PA: Quote, Profile, Research) said trading had suffered in China due to anti-French protests over the Olympics as it posted a forecast-beating 10.2 percent rise in first-quarter sales.

Carrefour, the world's second-biggest retailer by value behind Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research), said revenue reached 23.38 billion euros ($36.1 billion) in the three months to March 31, beating expectations of 23.19 billion based on the average forecast compiled by Reuters Estimates.

The company became a target of Chinese anger, drawing an outpouring of nationalist indignation after a chaotic torch relay in Paris in April, in which pro-Tibet protesters tried to snatch the flame away from wheelchair-bound athlete Jin Jing.

Chinese took to the streets in several cities to demand a boycott of French goods and targeted Carrefour in their protests.

Chinese Internet users also accused the French retailer of supporting pro-Tibetan independence groups seeking to disrupt the Beijing Olympics.

"About China ... when you have thousands of people in front your stores demonstrating and boycotting, I would say the business is more difficult than before," Chairman Jose Luis Duran said in a conference call with analysts.

"We have had three more difficult weeks but I can confirm that it is pretty quickly improving again.