*

Operating profit down 15% but better than expected

*

Tariff uncertainty has hit North American consumer

confidence

*

Incoming CEO says he wants to make the company less

conservative

(Writes through with tariff impact, new CEO's comments, outlook

and potential delay in North American unit IPO)

By Rocky Swift

TOKYO, April 9 (Reuters) - Japan's Seven & i Holdings ( SVNDF )

said on Wednesday fourth-quarter profit dropped 15%, a

result that could hamper its ability to fend off a takeover

attempt by Canada's Alimentation Couche-Tard ( ANCTF ).

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.

High levels of inflation lifted the cost of materials and

increased utility expenses in Japan, where it has also lagged

rivals in attracting price-conscious customers.

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.

Seven & i ( SVNDF ) booked 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%.

Seeking to bat away Couche-Tard's $47 billion bid, Seven & i ( SVNDF )

has argued that antitrust barriers in the U.S. may nix any deal

and its own initiatives to overhaul its business are sufficient

to increase corporate value.

After a management buyout led by Seven & i's ( SVNDF ) 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.

For the full year, operating profit tumbled 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.

The company in March 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 ( SVNDF ) will

repurchase and cancel 600 billion yen of shares this business

year.

Dacus said on Wednesday that the timing of the IPO may have

to be adjusted if the market environment turned out not to be

conducive.

In their most concrete sign of engagement yet, Seven & i ( SVNDF ) and

the operator of Circle-K stores said last month they were

working together to find buyers for around 2,000 of their

convenience stores in the U.S. - a step seen as necessary for

their potential merger to pass a U.S. Federal Trade Commission

review.

Sources have told Reuters that interested buyers are

primarily private equity firms.

Shares in Seven & i ( SVNDF ) closed at 1,848.5 yen on Wednesday

before the results. That remains far below Couche-Tard's offer

of around 2,700 yen, indicating that investors are sceptical the

bid will succeed.

($1 = 145.3800 yen)