Seven & i Holdings, owner of the 7-Eleven convenience store chain, saw a sharp fall in profit in the first quarter of its fiscal year due to higher costs.
The Tokyo-listed group reported results showing revenue net profit of 21.39 billion yen ($132.2 million) for the three months ended May 31, down 49% on a year earlier and well short of the consensus analysts forecast of Y41.73 billion, per Visible Alpha.
For its overseas convenience stores, net profit fell almost 80% to Y4.47 billion
North American operations are operating in what it called a "tough consumer spending environment, characterized by continued inflationary pressures and high interest rates that have shaped diverging patterns of consumption".
North American same-store sales fell and profit margin deteriorated due to higher costs of products, labor, rents and other expenses.
Earnings guidance was unchanged for the year to February 2025.