Improved performance by the overseas convenience-store business of Tokyo-based Seven & i Holdings Co. Ltd., parent of 7-Eleven Inc. in the United States, helped the global retailer beat analysts’ estimates with operating profit that rose 9.7% in the quarter ended May 30.
“It’s a tough retail environment in the U.S.,” Stan Reynolds, president of 7-Eleven Inc., said during an earnings briefing, according to a Reuters report. “The customer in the U.S. is really looking for value, so we are leaning in with value offers.”
Profit fell at the company’s domestic convenience-store business while overall net profit was boosted by the sale of store assets by Seven & i’s supermarket and department store chain Ito-Yokado, said Reuters.
In the United States, merchandise same-store sales growth was up year over year, as was merchandise gross profit margin, Seven & i revealed in its first-quarter 2025 report. Gross profit margins improved due to the expansion of proprietary products and optimization of labor costs.
Seven & i’s overall profit in the first quarter was $445.2 million, compared to an analyst estimate of $395.8 million, reported Reuters. Quarterly net profit more than doubled, a Wall Street Journal report said.
Operating profit for Seven & i’s domestic c-store business fell, weighed by higher costs, the report said. The Japanese company attributed the cost increase partly to the installation of in-store cooking equipment as it stepped up its offerings of freshly made items such as bread and drinks. Seven & i is focusing on proprietary and freshly made goods as part of efforts to boost shareholder value, said the report.
Seven & i is under pressure to improve its earnings as it is contending with the $47.2 billion takeover bid from Canada-based rival and global c-store retailer Alimentation Couche-Tard Inc., parent of the Circle K brand.
- 7-Eleven is No. 1 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count. Laval, Quebec-based Alimentation Couche-Tard is No. 2.
Last August, Couche-Tard submitted a bid of $14.86 per share or $39 billion to acquire Seven & i, which rejected the proposal twice, saying it “undervalues” the company. Couche-Tard in October raised its offer to $18.19 per share or $47.2 billion. And on Jan. 24, Couche-Tard submitted an revised, yen-denominated, nonbinding proposal at Seven & i’s request to confirm its “continued interest” in acquiring the company. It did not disclose the amount of this offer.
A $58 billion management buyout with funding from banks, trading company Itochu Corp. and the founding Ito family fell apart in late February with the withdrawal of Itochu.
In May, Couche-Tard and Seven & i signed a nondisclosure agreement (NDA), signaling an intensification of the takeover talks between the two companies. The NDA allows for the sharing of financial information between the retailers.
Seven & i has proposed an initial public offering (IPO) for 7-Eleven in the United States and is exploring options for potential divestitures to minimize possible antitrust issues.
Seven & i’s portfolio of businesses includes convenience stores, superstores, supermarkets, specialty stores, foodservices, financial services and IT services. It owns and operates more than 85,000 7-Eleven c-stores globally, including those in the United States, Canada and other countries. Irving, Texas-based 7-Eleven Inc. operates, franchises or licenses more than 83,000 convenience stores in 19 countries and regions, including more than 13,000 7-Eleven convenience stores in the United States and Canada.
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