Seven & i H1 Operating Profit Rises 12% as 7-Eleven North America Profit Nearly Doubles; Japan Convenience-Store Profit Falls 10%

A smaller group earns more

Seven & i Holdings Co., Ltd. (TSE: 3382), the Tokyo-based parent of 7-Eleven, reported consolidated first-half results for FY2/2027, the six months from March 1 to August 31, 2026, on October 8, 2026 under Japanese GAAP. Operating revenue fell 2.8% to ¥5,460,274 million, while operating profit rose 11.5% to ¥232,280 million, ordinary profit 19.0% to ¥221,923 million and profit attributable to owners of the parent 2.2% to ¥124,444 million. Earnings per share rose 13.4% to ¥54.26 on a lower share count, and EBITDA rose 1.1% to ¥490,608 million.

The headline comparison is distorted by changes in the group's shape. Seven Bank and nine of its subsidiaries left the consolidation in June 2025, and the subsidiaries of York Holdings in September 2025; both are now equity-method affiliates. Against a restated base that strips them out, operating revenue rose 16.3% and operating profit 36.6%. A weaker yen also lifted operating revenue by about ¥311 billion and operating profit by ¥9.4 billion, with the dollar averaging ¥158.29 against ¥148.40. Group convenience-store merchandise sales, including franchisees, rose 4.1% to ¥5,045,915 million.

North America drives the gain

The overseas convenience-store segment grew operating revenue 17.7% to ¥4,966,613 million and operating profit 87.7% to ¥150,422 million. At 7-Eleven, Inc., U.S. same-store merchandise sales in dollar terms were higher for the half, gasoline earnings rose with market conditions and the merchandise gross margin improved as the company expanded original fresh food and drinks; operating profit before goodwill amortization rose 55.5% to ¥209,064 million. In the second quarter alone, however, higher gasoline prices and a tough consumer backdrop cut customer counts, and U.S. same-store merchandise sales came in slightly below the prior year.

The domestic convenience-store segment grew operating revenue 1.0% to ¥467,322 million, but operating profit fell 9.8% to ¥109,899 million. At Seven-Eleven Japan, higher spending per customer lifted same-store sales and the gross margin held steady, but up-front investment in in-store cooking equipment and next-generation store systems, together with inflation, raised SG&A expenses, and operating profit fell 9.3% to ¥110,221 million. Second-quarter operating profit fell 13.7% as soft-drink sales lagged and the gross margin slipped.

Share buyback, placement and cancellation

On August 3 the company bought back 189,663,300 of its own shares for ¥399,999 million, partly through an accelerated share repurchase, and on August 17 it placed 144,927,534 treasury shares with SoftBank Corp., PayPay Corporation and Sumitomo Mitsui Card Company. It had cancelled 284,297,500 treasury shares on July 15. Total assets rose 3.6% to ¥9,468,412 million from February 28, mainly on currency movements, and the equity ratio was 39.1%. On October 8 the board approved the issue of up to ¥120 billion of domestic unsecured bonds between October 23 and December 31.

Guidance and dividend unchanged

Seven & i kept the FY2/2027 forecast it published on July 9, 2026: operating revenue of ¥10,430,000 million, operating profit of ¥425,000 million (+0.5%), ordinary profit of ¥390,000 million (+3.3%) and net profit of ¥278,000 million (−5.0%), or ¥121.90 per share. The first half delivered about 55% of the operating-profit target. The company paid an interim dividend of ¥30 and expects ¥30 at year-end, for an annual ¥60.00 against ¥50.00.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.