Seven & i Holdings Faces Profit Plunge: Takeover Threat Looms Large
Urgent Financial Struggles Signal Vulnerability for 7-Eleven Operator Fourth Quarter Profit Drop Shakes Seven & i Holdings Amid Takeover Bid Japan’s Seven & i Holdings, renowned for operating the globally recognized 7-Eleven convenience store chain, disclosed a troubling 15% decline in fourth-quarter operating profit, spotlighting the company’s financial vulnerabilities at a critical juncture. This profit downturn, amounting to $726 million (105.6 billion yen) for the December to February period, outperformed the LSEG consensus estimate of $94.5 million but marked the fourth straight quarter of diminishing returns. This persistent decline emerges as a pivotal factor that could weaken Seven & i Holdings’ defenses against a formidable $47 billion takeover bid from Canada’s Alimentation Couche-Tard, the operator of Circle-K stores. Amidst inflationary pressures in Japan elevating material and utility costs, the company has struggled to captivate price-sensitive consumers,...