7-Eleven Owner's Shares Slump After Profit Falls on Weak International Business
By Kosaku Narioka
Seven & i Holdings shares fell sharply Friday morning after its first-quarter net profit dropped 35% due to weakness in its overseas convenience-store business, missing analysts' expectations.
The company's shares were recently 6.1% lower at 5,788 yen after falling as much as 6.4% earlier.
The Japanese operator of 7-Eleven and other retail stores said Thursday after market close that net profit fell to Y42.18 billion ($305.5 million) for the quarter ended May 31 from Y65.04 billion a year earlier. That undershot the estimate of Y61.08 billion from a poll of analysts by FactSet.
Operating profit for its overseas convenience-store business dropped 52% to Y20.98 billion as retail gas prices fell and its profit margin for gas sales narrowed.
Seven & i said the gas sales profit margin has improved since April.
The company kept its revenue and net profit projections unchanged for the fiscal year ending February 2024. It continues to expect revenue to fall 5.6% to Y11.154 trillion and net profit to rise 1.4% to Y285.00 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
July 13, 2023 22:07 ET (02:07 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Best- and Worst-Performing Stocks of Q2 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations