Seven & I Holdings, the Japanese retail company that operates 7-Eleven and other retail stores, announced a 35% decrease in net profit for the first quarter. The decline was attributed to weak performance in its overseas-convenience-store and superstore businesses.
Financial Performance
- Net profit for the quarter ended May dropped to 42.18 billion yen ($304.5 million), compared to 65.04 billion yen in the previous year.
- The reported net profit fell short of the analysts’ estimated figure of 61.08 billion yen.
Revenue Growth
- First-quarter revenue witnessed an 8.3% increase, reaching 2.651 trillion yen.
Business Segments
- The overseas-convenience-store business experienced a significant decline in operating profit, down 52% to 20.98 billion yen.
- Operating profit for the superstore business also declined by 5.8%, amounting to 3.32 billion yen.
- However, both the domestic-convenience-store and financial-services businesses saw an increase in earnings.
Outlook
Seven & I Holdings maintained its revenue and net profit forecasts for the fiscal year ending February 2024. It expects revenue to decrease by 5.6% to 11.154 trillion yen, while net profit is projected to rise by 1.4% to 285.00 billion yen.