Despite fewer Americans hitting the pumps, 7-Eleven, the U.S. convenience store unit of the Japanese company Seven & i Holdings Co Ltd (OTC:SVNDY) announced nearly $349 million profit, largely attributed to the recent surge in U.S. gasoline prices.
As per the company, surge in gasoline prices contributed nearly half of the company's total operating profit of 105 billion yen ($650 million) for the first quarter ended May 31, announced on Thursday.
As fuel prices increased, 7-Eleven stated that its gasoline sales volume fell 8.8%, but its fuel margin rose 16.2%.
The National Association of Convenience Stores (NACS), which counts 7-Eleven among its members, noted that gross margins typically come under pressure when wholesale costs rise sharply.
However, 7-Eleven's profit margin did not appear to be negatively impacted by this trend in the previous quarter.
