7-Eleven's Q1 bolstered by fuel and fresh food
Seven & i Holdings, the parent company of 7-Eleven, has announced record-high earnings for the first quarter of fiscal year 2026. Driven by strong merchandise sales and high fuel margins, the company has raised its full-year financial forecasts.
Steve Dacus, president and chief executive officer, stated, "our first-quarter results demonstrate continued progress in executing our strategy to transform 7-Eleven. Excluding the impact of the deconsolidation of York Holdings and Seven Bank, our consolidated operating income and EPS more than doubled from the same period last year, reaching record highs. On the same basis, we now expect operating income to deliver double-digit growth for the full fiscal year.”
The first-quarter results, which ended May 31, 2026, show significant growth when excluding the impact of deconsolidating York Holdings and Seven Bank. On this comparable basis, consolidated operating income and earnings per share (EPS) more than doubled from the same period last year.
First-quarter financial highlights
- Operating income: Increased by 122.4% year-over-year to ¥105.0 billion [approximately CA$916.23 million].
- Net income: Attributable to owners of the parent, net income rose 95.3% to ¥60.6 billion [approximately CA$528.80 million].
- Earnings per share (EPS): Increased by 118.4% to ¥26.21 [approximately CA$0.23].
- Convenience store group merchandise sales: Rose 3.2% year-over-year to ¥2.42 trillion [approximately CA$21.12 billion].
- Revenues from operations: Totalled ¥2.37 trillion [approximately CA$20.68 billion].
Dacus stated, "reflecting our strong first-quarter performance, we have raised our full-year operating income and net income forecasts."
Regional performance breakdowns
Seven-Eleven Japan (SEJ)
The company’s Japanese division saw solid momentum from investments in customer value:
- Same-store sales: Grew by 2.0%, supported by higher customer spending and improving foot traffic.
- Total store sales: Increased by 2.4% to ¥1.37 trillion [approximately CA$11.95 billion].
- Merchandise gross profit margin: Improved by 0.3 percentage points to 32.0%.
- Strategic focus: The division continued investments in fresh food, store modernization and digital capabilities.
7-Eleven, Inc. (North America)
In North America, the chain focused on its "North Star" plan to optimize its business:
- U.S. same-store merchandise sales: Increased by 1.4%.
- Total store sales: Rose by 1.2% to ¥2.38 trillion [approximately CA$20.77 billion].
- Operating oncome: Reached ¥88.0 billion [approximately CA$767.89 million]. This performance was heavily supported by higher fuel margins resulting from significant volatility in energy commodity markets.
- Strategic focus: Capital was directed toward merchandise offerings, fresh food, store network modernization and the customer experience.
Raised outlook for fiscal year 2026
Based on stronger-than-expected operating performance in the first half of the year, Seven & i Holdings has upgraded its full-year guidance. The year-on-year growth expectations exclude the impacts of the York Holdings and Seven Bank deconsolidations.
The company plans to reinvest a portion of the extra profits into accelerating its strategic growth initiatives. This includes strengthening customer value, expanding digital services, and building operational capabilities. The updated second-half outlook also factors in more normalized assumptions for fuel market conditions.
Chief financial officer Tetsuya Takagi highlighted that the positive quarter has improved the company's financial flexibility. "We will continue to allocate capital with discipline, balancing investments that strengthen our long-term growth with a relentless focus on cost management and capital efficiency," Takagi said.
