Seven & i Holdings Co., Ltd.

For Q3 2024, revenue from operations was ¥9.0655 trillion, up 5.7% year on year. Operating income was ¥315.4 billion, down 23.1% year on year, and net profit was ¥63.6 billion, down 65.1% year on year. Management said these results were 97% of the revised revenue plan, 102.3% of the revised operating income plan, and 101% of the revised net profit plan. Special losses totaled ¥178.9 billion for the first nine months, including ¥45.8 billion in the first half and ¥56.7 billion in Q3; all currently foreseeable one-off special losses are expected to total ¥149.6 billion for the full year, while special gains are expected to total ¥114.3 billion. For the full year, management said its October forecast remains unchanged and it expects to achieve each profit item. Seven-Eleven Inc. said November same-store sales were slightly positive and December sales excluding cigarettes are projected to be positive after adjusting for a calendar headwind, while 2025 targets remain same-store sales growth of 1.5%, merchandise gross margin of 34.1%, and OSG&A to sales of 16.4%.

Yoshimichi Maruyama framed 2024 as a turnaround year and said the group is starting to see the results of several years of selection and concentration efforts. He emphasized that low-profit businesses and assets are being streamlined under the April action plan and should be completed within this fiscal year, setting up profit growth from 2025 onward. His tone was constructive and confident, repeatedly saying the company is getting closer to a major inflection point.

Fumihiko Nagamatsu focused on the mechanics of the restructuring program and the related special items. He said cumulative special losses reached ¥178.9 billion through nine months, with ¥149.6 billion expected for the full year and ¥114.3 billion of special gains, including sale-and-leaseback gains from SEI. He also said the company still expects to meet the full-year earnings forecast, while noting that Superstore EBITDA was below target and that Ito-Yokado was hurt by higher raw material and electricity costs as well as weak demand in the hot weather period.

The notable questions came through management commentary on what is driving recovery and where risks remain. Seven-Eleven U.S. acknowledged that Q3 was below expectations because of the still-weak consumer and the CrowdStrike outage, but said traffic and sales are improving, with November same-store sales slightly positive and December ex-cigarettes expected to be positive aside from calendar timing. In Japan, management said the “pleasant value” price strategy is working, especially with younger and price-sensitive customers, while it is also working to rebuild gross margin through higher-margin counter products and bakery rollouts.