Seven & I Holdings jumped the most in a month on Thursday, a day after announcing a plan to buy back ?600 billion ($4 billion) worth of shares over the next year, which helped ease investor concerns over a weaker earnings outlook.
The stock climbed as much as 9.7% in Tokyo trading, the largest intraday gain since March 6. The benchmark Topix Index rose as much as 8.3%, rebounding after U.S. President Donald Trump announced a 90-day pause on higher tariffs that hit dozens of trade partners.
The share repurchase through February, the end of the retailer¡¯s fiscal year, is part of a ?2 trillion buyback plan Seven & I announced last month.
The operator of 7-Eleven convenience stores is taking a series of steps, including share buybacks, selling the under-performing superstore business and divesting its banking unit, to try to boost shareholder value amid a takeover bid by Canadian retailer Alimentation Couche-Tard.
Seven & I also announced its full-year forecast Wednesday after markets in Tokyo closed. Its operating profit and revenue for the current year missed analyst estimates, adding pressure on the company to find new avenues for growth.
Operating profit will rise 0.7% to ?424 billion for the 12 months ending February 2026, falling short of the average analyst forecast of ?459.6 billion. During the same period, Seven & I expects sales to come in at ?10.76 trillion, a 10% decline from a year earlier.
Seven & I said it expects domestic convenience store sales to rise 9.4% this fiscal year, while seeing revenue from overseas convenience stores falling 3.6%.
While the Japanese economy¡¯s gradual recovery is seen boosting wages, investments and tourism demand, growing uncertainty over trade policy remains a key risk to the outlook, the retailer said in a statement Wednesday.
In a climate of economic uncertainty, ¡°the retailer that can move quickly to adjust to bring value to customers is the retailer that¡¯s going to win,¡± CEO Stephen Dacus said. ¡°Improving our speed to become faster than our competitors will be a huge competitive advantage.¡±
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.