Seattle / WA. (sc) Starbucks Corporation reported financial results for its fiscal first quarter ended January 02, 2011. The previously-announced restructuring program, which was in effect during the fiscal 2008 to 2010 period, was completed at the end of fiscal year 2010. As a result, there are no restructuring charges reflected in fiscal Q1/2011. Fiscal First Quarter 2011 Highlights:
- Total net revenues increased eight percent to a record 3,0 billion USD
- Comparable store sales increased seven percent, driven by a five percent increase in traffic and a two percent increase in average ticket
- U.S. comparable store sales increased eight percent, driven by a six percent increase in traffic and a two percent increase in average ticket
- International comparable store sales increased five percent, driven by a two percent increase in both traffic and average ticket
- Consolidated operating margin improved to a record 17,0 percent: up 400 basis points on a GAAP basis and up 340 basis points over the prior-year period´s non-GAAP results
- U.S. operating margin improved to a record 21,9 percent: up 450 basis points on a GAAP basis and up 410 basis points over the prior-year period´s non-GAAP results
- International operating margin improved to a record 16,3 percent: up 900 basis points on a GAAP basis and up 720 basis points over the prior-year period´s non-GAAP results
- EPS increased 41 percent to a record 0,45 USD in Q1/2011 compared to 0,32 USD in Q1/2010
- The Board of Directors declared a 0,13 USD per share cash dividend to shareholders of record as of February 09, 2011, which will be paid on February 25, 2011.
«Our holiday lineup resonated well with customers and led to record results for the quarter», said Howard Schultz, chairman, president and ceo. «The strength in our top line – combined with continued improvement in operations – continues a recent trend of record quarterly operating profits and margins, enabling us to more than offset the impact of unusually high coffee costs. As Starbucks approaches our 40th anniversary in March 2011, we look forward to taking full advantage of the many exciting growth opportunities that exist for us all around the world».
«Starbucks delivered another record-breaking quarter as our customers continue to respond favorably to new offerings and an improved store experience», commented Troy Alstead, cfo. «The strong momentum in our global business in fiscal 2011 positions us to deliver 15 percent to 20 percent EPS growth compared to last year´s results, and to reaffirm our 2011 guidance despite dramatically higher coffee costs. Through the strength of our global retail business and the exciting future growth opportunities in consumer products and Seattle´s Best Coffee, we are on track with our plans to grow and diversify Starbucks and pursue a larger share of global coffee consumption», added Alstead.
Consolidated net revenues were a record 3,0 billion USD for Q1/2011, an increase of eight percent over Q1/2010. The increase was primarily due to a seven percent increase in global comparable stores sales, comprised of a five percent increase in the number of transactions and a two percent increase in average ticket.
Operating income for Q1/2011 totaled a record 501,9 million USD, representing operating margin expansion of 400 basis points to a record 17,0 percent. This improvement was primarily due to sales leverage on occupancy costs and store operating expenses, partially offset by higher coffee costs.
In 2011 Starbucks plans to open approximately 500 net new stores globally: approximately 100 in the U.S. and approximately 400 internationally, the majority of which are expected to be licensed stores.
