Starbucks Corp. reported financial results for its fiscal second quarter ended April 3, 2011.
- Total net revenues increased 10 percent to $2.8 billion.
- Comparable store sales increased 7 percent, driven by a 6 percent increase in traffic and a 1 percent increase in average ticket.
- U.S. comparable store sales increased 7 percent, driven by a 6 percent increase in traffic and a 1 percent increase in average ticket.
- International comparable store sales increased 4 percent, driven by an increase in traffic.
- Consolidated operating margin was 13.5 percent: up 10 basis points on a GAAP basis and down 20 basis points over the prior-year period’s non-GAAP results.
- U.S. operating margin improved to 18.5 percent: up 70 basis points on a GAAP basis and up 60 basis points over the prior-year period’s non-GAAP results.
- International operating margin improved to 11.8 percent: up 420 basis points on a GAAP basis and up 290 basis points over the prior-year period’s non-GAAP results.
- EPS increased 21 percent to $0.34 in Q2 FY11 compared to $0.28 in Q2 FY10.
On March 1, Starbucks assumed direct management of its packaged coffee business
On March 10, the company announced a strategic relationship with Green Mountain Coffee Roasters for the manufacturing, marketing, distribution and sale of Starbucks® coffee and Tazo® tea branded K-Cup® portion packs for use in the Keurig® Single-Cup Brewing system, making Starbucks the exclusive, licensed super-premium brand on the Keurig® platform
The board of directors declared a $0.13 per share cash dividend to shareholders of record as of May 11, 2011, which will be paid on May 27, 2011
"Starbucks record fiscal second quarter results reflect solid performance and execution across all of our businesses," said Howard Schultz, chairman, president and CEO in a prepared statement. "Our sales, traffic and customer trends all point to the expanding power of the Starbucks business and brand. And our 40th anniversary celebration continues to resonate around the world, driving strong engagement among our partners and our customers. I saw this firsthand in China, where my visit this week confirmed how ideally-positioned Starbucks is to profitably grow its store presence across China in the years ahead," added Schultz.
"The underlying health of our business has never been better and our fiscal second quarter results continue to demonstrate this strength," commented Troy Alstead, CFO. "Customer traffic grew in both our U.S. and International segments and we continue to see improved profitability throughout the retail store business as operational improvements combined with revenue growth drive strong sales leverage. Our results for the quarter were even more significant when viewed in the context of the investments we made during the period and the charges related to Seattle's Best Coffee store closures in Borders bookstores," added Alstead. "We remain well positioned to deliver on our previously communicated fiscal 2011 outlook of 15 percent to 20 percent EPS growth compared to last year's results despite dramatically higher commodity costs."