by Kosaku Narioka
Net Profit Forecast
Seven & i Holdings is expected to report a 28% drop in net profit to 50.91 billion yen ($342.3 million) for the quarter ended Aug. 31, according to a poll of analysts by FactSet. This is a decrease from the 71.05 billion yen reported in the year-earlier period.
Second-quarter revenue is estimated to have fallen 9.4% from a year earlier to 2.904 trillion yen, according to the FactSet poll.
What to Watch
Investors are keeping a close eye on the recovery of profitability in Seven & i’s overseas convenience-store business. In the first quarter, operating profit for this segment fell 52% to 20.98 billion yen due to the drop in retail gas prices and a narrowing profit margin for gas sales.
Seven & i maintained its earnings forecasts for this fiscal year, projecting a 5.6% decline in revenue to 11.154 trillion yen and a 1.4% increase in net profit to 285.00 billion yen. Any changes to these guidance figures will be of significant interest to investors.
During the second-quarter results briefing, Seven & i will announce the details of a major revamp of its superstore business. Market focus will be on any major steps taken to improve superstore operations.