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Seven & i reports mixed H1'19 earnings but sticks to full fiscal year guidance


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Seven & i reports mixed H1'19 earnings but sticks to full fiscal year guidance

Japanese retailer Seven & i Holdings Co. Ltd. on Oct. 11 delivered mixed fiscal first-half earnings in the face of a challenging environment for retailers, but the owner of the 7-Eleven convenience store chain maintained its forecast for fiscal 2019 profit.

Seven & i, which operates more than 63,000 stores in 18 countries, reported that for the six months ended Aug. 31, net income attributable to owners of the parent rose 13.3% to ¥101.36 billion from ¥89.42 billion in the year-ago period. Net income per share rose to ¥114.58 from ¥101.10.

Revenue for the period climbed 11.9% to ¥3.343 trillion from ¥2.987 trillion a year prior, largely on the strong performance of the company's convenience stores outside Japan, which more than offset weaker sales from its department stores such as Sogo & Seibu, and specialty stores like maternity retailer Akachan Honpo.

Across Seven & i's different business segments, first-half revenue for overseas convenience store operations, which includes U.S.-based 7-Eleven Inc., surged 41.8% year over year to ¥1.358 trillion, while it rose 2.9% to ¥486.24 billion for convenience stores in Japan.

Meanwhile, department store operations saw revenue fall 13.4% to ¥285.85 billion, while revenue dropped 12.4% to ¥182.73 billion for specialty store operations. Six-month revenue for superstore operations such as the Ito-Yokado chain remained mostly flat, increasing only 0.6% to ¥948.52 billion.

For the fiscal year ending Feb. 28, 2019, Seven & i reiterated its guidance for attributable net income of ¥210 billion and net income per share of ¥237.40. It also continues to forecast an annual dividend payout of ¥95 per share.

In Tokyo, Seven & i's shares ended the day down ¥139, or 2.7%, at ¥4,940.

As of Oct. 10, US$1 was equivalent to ¥112.67.