Key facts
- Seven & i Holdings' net profit increased by 24% to 60.6 billion yen for the March-May quarter.
- Higher gasoline earnings from its North American business significantly contributed to the profit rise.
- The company raised its full-year revenue and profit guidance.
- First-quarter revenue decreased by 14% to 2.38 trillion yen.
- Operating profit for the overseas convenience-store business surged over sevenfold, while domestic operating profit fell.
Seven & i Holdings, the parent company of the 7-Eleven convenience store chain, reported a 24% year-over-year increase in net profit for the March-May quarter, reaching 60.6 billion yen ($373 million). This surge was primarily driven by strong earnings from its North American business, fueled by higher gasoline prices and improved fuel margins, despite a decrease in overall gasoline sales volume.
The company has consequently raised its annual revenue and profit guidance for the fiscal year ending February 2027. The revised forecast anticipates revenue to be flat at 10.43 trillion yen and net profit to decline by 5.0% to 278.00 billion yen.
Despite the profit boost, first-quarter revenue for Seven & i Holdings dropped 14% to 2.38 trillion yen. Operating profit for its overseas convenience-store operations saw a significant increase, rising more than sevenfold to 65.59 billion yen, while its domestic convenience-store business experienced a 4.2% decline in operating profit to 52.24 billion yen.
Seven & i Holdings also announced that the planned listing of its North American business has been delayed to at least March 2027, a move initially intended to occur by the end of 2026. This delay follows the Middle East conflict's impact on oil prices and gasoline demand outlook. In March 2025, the company had introduced measures to enhance shareholder value, aiming to fend off a takeover attempt by Alimentation Couche-Tard, which was later abandoned.
To further boost earnings, the company is focusing on improving its proprietary and freshly made food product offerings and is closing unprofitable stores in North America. However, the stock has seen a nearly 10% decline year-to-date, influenced by concerns over consumption strength amid the Middle East conflict and elevated fuel prices.