Seven & I Holdings’ profit has declined 24% on broader retail weakness despite some signs of recovery at its convenience stores in Japan and North America, which could make it harder to stave off investor pressure to engage with a takeover approach from Alimentation Couche-Tard.
Operating profit was ¥128.4 billion ($812 million) during the three months to the end of November, compared with ¥169 billion a year earlier, the company reported Thursday. Analysts were projecting, on average, profit of ¥132 billion.
The mixed results mean that Seven & i will probably face challenges convincing investors that it can turn around its all-important convenience store business. The retailer has been spurred into radical action to fend off Couche-Tard’s approach, embarking on a separation of its domestic supermarkets and retail business in order to focus on its convenience-store operations.
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