Company Reports

Japan’s Seven & i Holdings, or 7&i, counts its Japanese and US operations as the major profit contributors. However, Seven-Eleven Japan, or SEJ, is far more profitable, with an operating profit margin of 24.8% in fiscal 2025, while 7-Eleven Inc., or SEI, has an operating profit margin of 4.2%. Part of this is due to the significance of low-margin gasoline sales in the US. Higher-margin food sales make up 68% of SEJ sales and just 26% of its SEI sales.

Seven & i reported first-quarter fiscal 2026 (ending February 2027) net income of JPY 60.6 billion, up 23.6% year over year. Lower operating margin at Seven Eleven Japan, due to higher SG&A, was offset by record-high fuel margin at Seven Eleven International. We transfer coverage.

Seven & i's February-quarter operating profit fell 7.3% year on year as revenue slid 18%. The company expects fiscal 2026 (ending February 2027) net profit to fall 7.8% and has deferred the listing of its US subsidiary, 7-Eleven Inc., or SEI, to 2027. The share price fell 4.6% on the news.

Japan’s Seven & i, or 7&i, is the holding company of the world’s largest convenience store chain by store count, with more than 84,000 stores under the 7-Eleven brand, mainly through a franchise model. While the chain originated in the US, it has been Japanese-owned since 1991. The North American and Japanese operations make up the majority of the group's operating profit. However, the Japanese convenience store operations are far more profitable with Seven & I Japan, or SEJ, enjoying an operating profit margin of around 25% in fiscal 2025, while 7-Eleven Inc., or SEI, is at 4.2%. Part of this is due to the significance of low-margin gasoline sales in the US. Higher margin food sales make up 68% of the Japan store sales and just 26% of its US store sales.

Seven & i's year-to-Nov. 30 operating income of JPY 325 billion is on track to meet fiscal 2025 (ending February 2026) full-year guidance of JPY 404 billion. The company raised its fiscal 2025 net profit guidance to JPY 270 billion, from JPY 265 billion, on increased associate income.

Japan’s Seven & i, or 7&i, is the holding company of the world’s largest convenience store chain by store count, with more than 84,000 stores under the 7-Eleven brand, mainly through a franchise model. While the chain originated in the US, it has been Japanese-owned since 1991. The North American and Japanese operations make up the majority of the group's operating profit. However, the Japanese convenience store operations are far more profitable with Seven & I Japan, or SEJ, enjoying an operating profit margin of around 26% in fiscal 2024, while 7-Eleven Inc., or SEI, is seeing low-mid single-digit margins. Part of this is due to the significance of low-margin gasoline sales in the US. Higher margin food sales make up 68% of the Japan store sales and just 25% of its US store sales.

Seven & i’s August cumulative six-month operating profit is up 11% year on year, driven by its overseas convenience store and superstore activities. The company introduced a net EPS guidance of JPY 114.38 for fiscal 2025 (ending February), reflecting a likely buyback of 11% in its share base.

Japan’s Seven & i, or 7&i, is the holding company of the world’s largest convenience store chain by store count, with more than 84,000 stores under the 7-Eleven brand, mainly through a franchise model. While the chain originated in the US, it has been Japanese-owned since 1991. The North American and Japanese operations make up the majority of the group's operating profit. However, the Japanese convenience store operations are far more profitable with Seven & I Japan, or SEJ, enjoying an operating profit margin of around 26% in fiscal 2024, while 7-Eleven Inc., or SEI, is seeing low-mid single-digit margins. Part of this is due to the significance of low-margin gasoline sales in the US. Higher margin food sales make up 68% of the Japan store sales and just 25% of its US store sales.

Canadian competitor Alimentation Couche-Tard has dropped its USD 46 billion bid for Seven & i.

Seven & i's fiscal first-quarter net profit rose 129% to JPY 49.0 billion.

Seven & i's financial year ending in February 2025 saw earnings fall 23%, but management guides for a 47% bounce in February 2026. The latter, coupled with the overnight news of a tariff pause, led to shares rebounding 10%.

The convenience store operations under the 7-Eleven banner have been a key driver of Seven & i Holdings' growth. After accelerating its domestic store expansion and adding more than 7,600 stores between 2011 and 2018, management has embarked on overseas expansion, setting off from North America and now making inroads to other markets, including Vietnam and Australia. Management is pinning hope on foodservice and private-label growth, a key strategic initiative to boost per-store sales, to replicate its Japan success globally.

Seven & i plans to spin off its US operations into a separate listing and utilize proceeds from the spinoff along with cash from the sale of its superstore business to buy back shares. It also looks to sell down its stake in Seven Bank.

The convenience store operations under the 7-Eleven banner have been a key driver of Seven & i Holdings' growth. After accelerating its domestic store expansion and adding more than 7,600 stores between 2011 and 2018, management has embarked on overseas expansion, setting off from North America and now making inroads to other markets, including Vietnam and Australia. Management is pinning hope on foodservice and private-label growth, a key strategic initiative to boost per-store sales, to replicate its Japan success globally.

Seven & i will announce that independent director Stephen Dacus will take over as company president, according to an unconfirmed Nikkei report. The report also said Dacus is tasked with formulating a growth plan to help stave off the takeover bid from Alimentation Couche-Tard, or ATD.

Itochu has decided not to participate in the privatization bid for Seven & I. The family continues to seek partners.

Seven & i's operating income of JPY 315.4 billion for the cumulative nine months to November 2024 is down 23% year on year, reflecting an operating margin of 3.5% on revenue of JPY 9,069.5 billion. However, net profit fell 65% year on year to JPY 63.6 billion due to restructuring costs.

The convenience store operations under the 7-Eleven banner have been a key driver of Seven & i Holdings' growth. After accelerating its domestic store expansion and adding more than 7,600 stores between 2011 and 2018, management has embarked on overseas expansion, setting off from North America and now making inroads to other markets, including Vietnam and Australia. Management is pinning hope on foodservice and private-label growth, a key strategic initiative to boost per-store sales, to replicate its Japan success globally. Meanwhile, it has singled out food as the sole focus of the superstore business undergoing a major restructuring through 2025.

Seven & i’s interim operating margin fell 120 percentage points to 3.1%. The company cuts fiscal 2024 operating income guidance to JPY 403 billion from JPY 545 billion and net profit to JPY 163 billion from JPY 293 billion. Couche-Tard has raised its offer for Seven & I to $47 billion.

The convenience store operations under the 7-Eleven banner have been a key driver of Seven & i Holdings' growth. After accelerating its domestic store expansion and adding more than 7,600 stores between 2011 and 2018, management has embarked on overseas expansion, setting off from North America and now making inroads to other markets, including Vietnam and Australia. Management is pinning hope on foodservice and private-label growth, a key strategic initiative to boost per-store sales, to replicate its Japan success globally. Meanwhile, it has singled out food as the sole focus of the superstore business undergoing a major restructuring through 2025.