Starbucks: Reports Record Q1 Results, Reaffirms Targets

Seattle / WA. (sc) Starbucks Corporation reported financial results for its 13-week fiscal first quarter ended December 29, 2013. Highlights:

  • Consolidated net revenues increased twelve percent to 4,2 billion USD
  • Global comparable store sales grew five percent, driven by a four percent increase in traffic
    • Americas and U.S. comp growth of five percent, driven by a four percent increase in traffic
    • EMEA comp growth of five percent, the highest growth in 13 quarters, driven by a three percent increase in traffic
    • China/Asia Pacific comp growth of eight percent, driven by a seven percent increase in traffic
  • Consolidated operating income increased 29 percent to 814 million USD
  • Consolidated operating margin improved 260 basis points to 19,2 percent
  • Earnings per share increased 25 percent to 0,71 USD per share
  • Dollars loaded on Starbucks Cards globally reached 1,4 billion USD in the quarter; the My Starbucks Rewards program now has over seven million active members in the U.S.
  • Opened 417 net new stores globally – bringing total store count to 20’184 – including the 4’000th store in CAP and the 2’000th store in EMEA

«Holiday 2013 was the first in which many traditional brick and mortar retailers experienced in-store foot traffic give way to online shopping in a major way», said Howard Schultz, chairman, president and ceo of Starbucks Coffee Company. «As our solid traffic growth and record Q1 results demonstrate, Starbucks unique combination of physical and digital assets positions us as one of the very few consumer brands with a national and global footprint to benefit from the seismic shift underway».

«Starbucks strong Q1 results once again demonstrate the fundamental strength of the Starbucks business, particularly noteworthy given the continued economic challenges worldwide», said Troy Alstead, cfo and group president. «Successful holiday sales around the globe drove healthy growth in comparable store sales which, combined with our best in class operations, drove another quarter of record operating results. Our continued ability to execute at this level gives us the confidence to reaffirm our aggressive growth targets for fiscal 2014». The company reaffirms and updates the following fiscal 2014 targets:

  • Revenue growth of ten percent or greater
  • Global comparable store sales growth in the mid single digits
  • Consolidated operating margin improvement of approximately 150 to 200 basis points over FY13:
    • Americas: moderate improvement over FY13
    • EMEA: operating margin improving toward the high single digits
    • CAP: operating margin percentage moving toward the low 30´s
    • Channel Development: moderate improvement over FY13
  • Consolidated tax rate of approximately 34,5 percent
  • Earnings per share now expected to be in the range of 2,59 USD to 2,67 USD:
    • Q2 EPS in the range of 0,54 USD to 0,55 USD
    • Q3 EPS in the range of 0,64 USD to 0,66 USD
    • Q4 EPS in the range of 0,70 USD to 0,75 USD
  • Approximately 1’500 net new stores:
    • Americas: approximately 600
    • EMEA: approximately 150
    • CAP: approximately 750
  • Capital expenditures of approximately 1,2 billion USD
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