Japan's Seven & i Holdings said this week that fourth-quarter profit dropped 15%, a result that could hamper its ability to fend off a takeover attempt by Canada's Alimentation Couche-Tard (ACT), reported Reuters.

“Although earnings for the operator of 7-Eleven convenience stores came in somewhat better than expectations, it marked the fourth consecutive quarter of profit decline. In the United States, sales of merchandise fell and executives noted that uncertainty over President Donald Trump's tariffs has led to declines in consumer confidence and spending,” wrote the outlet.

Seven & i had operating profit of 105.6 billion yen ($726 million) for the December-February period, compared with an LSEG consensus estimate of 94.5 billion yen. Revenue edged up 0.4%. For the full year, operating profit fell 21% to 421 billion yen, its first decline in four years. It forecast a slight increase to 424 billion yen for the current business year.

Seven & i has previously rejected takeover bids from Couche-Tard and argued that antitrust barriers in the U.S. may nix any deal, and said that its own initiatives to overhaul its business are sufficient to increase corporate value.

After a management buyout led by Seven & i's founding family collapsed in February due to lack of funding, it has begun selling off non-core businesses and has named a new CEO.

"Truthfully, we have historically been a bit conservative," incoming chief executive Stephen Dacus, the company's first foreign head, said at a briefing. "This has led to us moving a bit slower than we should have and missing opportunities."

"This is something I intend to change," he added.

In March, the company announced a 2 trillion yen share buyback and proposed listing its North American convenience store subsidiary by the second half of 2026. In the first tranche of the buyback, Seven & i will repurchase and cancel 600 billion yen of shares this business year.

In the latest update on the Seven & i and ACT story, Reuters reported last month that the retailers are reportedly taking steps to divest thousands of stores they collectively own in North America to ease regulatory concerns ahead of a potential merger, and are now faced with an early test of the plan—attracting rival buyers for the stores.