By Sam Nussey

TOKYO (Reuters) -Japan’s Seven & i Holdings said on Thursday operating profit rose 9.7% in the March to May quarter, beating analysts’ estimates, on an improved performance by its overseas convenience stores business.

The 7-Eleven operator is under pressure to improve its finances in the face of a $47 billion takeover bid from Canada’s Alimentation Couche-Tard.

Profit in the first quarter was 65.1 billion yen ($445.19 million), compared to an estimate of 58 billion yen from six analysts polled by LSEG.

The Japanese retailing giant previously announced a share buyback, is selling off non-core assets and plans to list its North American convenience store business.

Profit fell at the company’s domestic convenience stores business while overall net profit was boosted by the sale of store assets by retailer Ito-Yokado.

In the U.S., Seven & i said gross profit margins improved due to the expansion of proprietary products and optimisation of labour costs.

Seven & i shares closed down 1.6% ahead of the earnings report and have fallen 13% year-to-date. The company had spent some 156 billion yen repurchasing shares by the end of last month.

The retailer maintained its earnings forecast.

($1 = 146.2300 yen)