Japan's Seven & i Holdings Co. Ltd. on Jan. 9 reported that net profit for the first nine months of fiscal 2020 increased 8.8% year over year, driven by the performance of its local convenience stores.
For the nine months ended Nov. 30, 2019, net income attributable to the owners of the parent climbed to ¥169.97 billion from ¥156.27 billion in the year-ago period.
Diluted EPS came in at ¥192.23, compared to ¥176.53 a year prior.
Revenue from operations declined 1.9% year over year to ¥4.976 trillion from ¥5.072 trillion, while total group sales inched up 0.1% to ¥9.019 trillion.
Across Seven & i's business segments, revenue rose 1.2% to ¥733.73 billion in its domestic convenience store operations but declined 2.2% to ¥2.076 trillion in its overseas convenience store operations, which include U.S.-based 7-Eleven Inc.
Revenue in its superstore operations decreased 2.8% to ¥1.366 trillion, and its department store business posted a 1.4% decline to ¥420.66 billion. Revenue in the company's financial services segment rose 0.1% to ¥162.91 billion but fell 5.1% to ¥253.32 billion in its specialty store operations.
Seven & i maintained its forecast for the fiscal year ending Feb. 29 for attributable net income to increase 3.4% to ¥210 billion. Net income per share is expected to amount to ¥237.63. The company still anticipates revenue from operations to decline 1.5% year over year to ¥6.688 trillion and group sales to come in 0.3% higher at ¥12.052 trillion.
Separately, the company said it will transfer 51% of its shareholding in its commercial property unit Seven & i Create Link Co. Ltd., or SCL, to its Ito-Yokado Co. Ltd. department store subsidiary. The company said Ito-Yokado will absorb the SCL business, effective March 1, accelerating its shift toward shopping centers. Ito-Yokado is expected to close 33 loss-making outlets and let go of about 1,700 workers by the end of full-year 2023.
Shares of Seven & i closed up 2% at ¥4,022 in Tokyo following the announcement.
As of Jan. 8, US$1 was equivalent to ¥108.87.