Japanese retailer Seven & i Holdings Co. Ltd. on July 5 reported a surge in profit for the fiscal first quarter, driven by strong sales at its overseas convenience stores.
For the three months ended May 31, net income attributable to the owners of the parent jumped 27.5% year over year to ¥42.89 billion from ¥33.63 billion, surpassing the S&P Capital IQ consensus estimate of ¥42.42 billion. Net income per share came in at ¥48.48, compared to ¥38.02 in the year-ago period.
The owner of the 7-Eleven brand also reported that first-quarter total sales for the group came in at ¥2.851 trillion, up 6.6% from ¥2.675 trillion a year prior. Revenue from operations rose 8.9% year over year to ¥1.599 trillion from ¥1.468 trillion, while net sales grew 10.8% to ¥1.295 trillion from ¥1.169 trillion.
Across different business operations, revenue for the quarter surged 32.5% year over year to ¥609.27 billion for overseas convenience stores, which includes U.S.-based operator 7-Eleven Inc., and ticked up 2.5% to ¥233.89 billion for convenience stores in Japan.
Meanwhile, revenue stayed flat at ¥476.08 billion for the group's superstore operations during the period, while inching up 6.1% to ¥53.61 billion for its financial services operations. The metric dropped 12.9% to ¥141.61 billion for department stores and 5.5% to ¥98.02 billion for specialty stores.
Seven & i also reaffirmed its forecast for the fiscal year ending Feb. 28, 2019, expecting to record attributable net income of ¥210 billion and net income per share of ¥237.41. It also plans to pay a dividend of ¥47.50 per share for the second and fourth fiscal quarters, bringing the annual dividend payout to ¥95.00 per share.
As of July 4, US$1 was equivalent to ¥110.54.