7-Eleven’s parent company reports profit drop in Q2 2026
Seven & i Holdings Co. Ltd., the parent company behind 7-Eleven, faced profit pressures during the second quarter of fiscal 2026 as higher expenses weighed on its bottom line. The global retailer reported an 11 % decline in operating profit during the second quarter of fiscal 2026 amid a challenging operating environment.
Despite the profit drop, overall sales across the company's convenience store network continued to grow, driven by strong fresh food demand in Japan and expanding delivery services in the United States.
All financial comparisons reflect ongoing store network changes, adjusting for the removal of York Holdings and Seven Bank from the company's core operations.
Strong sales growth offset by rising expenses
Total sales across all convenience store locations reached 5.04 trillion yen (CA$45.21 billion) up 4.1% from the same period last year. Total revenue for the company climbed 16.3% year over year to 5.46 trillion yen (CA$48.98 billion).
Across the globe, overall operating income across all business units reached 232.2 billion yen (approximately CA$2.08 billion), up 36.6 % year over year, while profit belonging to shareholders grew 17.8% to CA$1.12 billion. Per-share earnings rose 30.7% to CA$0.49 per share.
Japanese stores drive fresh food success
In Japan, stores open at least a year saw sales edge up 1.1%. Ready-to-eat counter foods proved to be the biggest sales driver, contributing nearly one percentage point to overall store sales growth as the company pushed to differentiate its food lineup. Profit margins on product sales held steady at 31.8%.
Operating income for the Japanese business dropped 9.3 % to 110.2 billion yen (CA$897 million). Company officials pointed to increased spending on technology systems, advertising and general operating expenses as the main reasons for the earnings drop. Administrative expenses remained within budget for the first half of the year and management expects system costs to ease starting in the fourth quarter.
US operations boosted by delivery and fuel markets
At 7-Eleven Inc. in the US, sales at stores open at least a year grew 0.6 %, while profit margins on product sales improved slightly to 33.5 %. US locations expanded hot food offerings and improved food quality to attract customers.
App-based delivery proved to be a major growth driver. Sales through the company's 7NOW app jumped 15.6 % year over year to 550 million US dollars in the first half of the year. The delivery service remains profitable and is currently running ahead of its full-year sales target of 1.1 billion US dollars.
Operating income for US operations jumped 45.8 % to 1.32 billion US dollars, helped by favourable fuel market conditions and closer integration of supply chains. Operating costs stayed within budget, even as higher fuel prices led to higher credit card processing fees.
Plans to serve ‘evolving needs of customers’
Seven & i Holdings kept its full-year financial target for FY2026 unchanged, stating that first-half performance aligned with its overall business plans. 7-Eleven plans to stick to disciplined management practices while focusing on improving the store experience for shoppers.
“During the first half, we remained focused on executing our transformation plan. Despite the challenging operating environment, we continued to advance our priorities, including delivering products and services that better meet the evolving needs of our customers,” said Steve Dacus, the president and chief executive officer for 7-Eleven. “In North America, we are beginning to see tangible results from improving product quality and assortment, growing 7NOW and optimizing our store network. To build on these results and create lasting value, we will reinforce our operating fundamentals while continuing to build the capabilities that elevate the customer experience.”
The company also continued its efforts to return value to shareholders. During the first half of the year, the business completed 400.0 billion yen in share buybacks alongside a 300.0 billion yen stock allotment, resulting in net share repurchases of 100.0 billion yen (CA $8970 million).
That brings total share buybacks since FY2025 to 700.0 billion yen (CA$6.28 billion) as the company moves toward its goal of repurchasing 2.0 trillion yen in shares by 2030. The company plans to pay an annual dividend of 60 yen per share ($CA0.49) for the year, split into equal mid-year and year-end payments of 30 yen per share(CA$0.27 per share).
