Starbucks Corp. reported financial results for its 13-week fiscal first quarter ended Dec. 29, 2013.
First quarter fiscal 2014 highlights:
- Consolidated net revenues increased 12 percent to $4.2 billion
- Global comparable store sales grew 5 percent, driven by a 4 percent increase in traffic
- Americas and U.S. comp growth of 5 percent, driven by a 4 percent increase in traffic
- EMEA comp growth of 5 percent, the highest growth in 13 quarters, driven by a 3 percent increase in traffic
- China/Asia Pacific comp growth of 8 percent, driven by a 7 percent increase in traffic
- Consolidated operating income increased 29 percent to $814 million
- Consolidated operating margin improved 260 basis points to 19.2 percent
- Earnings per share increased 25 percent to $0.71 per share
- Dollars loaded on Starbucks Cards globally reached $1.4 billion in the quarter; the My Starbucks Rewards program now has over 7 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 Co., in a prepared statement. “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.”