Starbucks Corp. recently reported financial results for its 13-week fiscal first quarter, which ended Dec. 30, 2012. For the fiscal first quarter 2013 total net revenues increased 11 percent to a record $3.8 billion. Global comparable store sales grew 6 percent, driven by a 4 percent increase in traffic and a 2 percent increase in average ticket.
Americas' comparable store sales grew 7 percent while China/Asia Pacific comparable store sales grew 11 percent. The consolidated operating margin expanded 40 basis points to 16.6 percent as the earnings per share (EPS) increased 14 percent to a record $0.57 per share, compared to $0.50 per share in the first quarter of fiscal year 2012.
“Starbucks strong performance in Q1 demonstrates the strength, and unique resilience, of our increasingly global business, and the power and growing relevance of the Starbucks brand to consumers and communities all around the world,” said Howard Schultz, chairman, president and chief executive officer, Starbucks Coffee Company. “Solid growth in our U.S. retail business, further expansion of our Channel Development initiatives and continued successful execution against our expansion plans throughout China and Asia Pacific all contributed to the record results we announced today. Starbucks has never been better positioned to achieve the goals we have set for ourselves around the world and I have never been more optimistic about our future.”
“Record earnings in the first quarter continued our strong momentum, reflecting the underlying strength in our core business,” commented Troy Alstead, chief financial officer, in a prepared statement. “We delivered excellent holiday results with 6 percent global comps, marking the 12th consecutive quarter of comps in excess of 5 percent. Our first quarter results demonstrate both efficiency, with record US productivity, and innovation, with the successful launch of Verismo, our newest growth platform.”
Alstead added, “Despite significant and unexpected cost pressures in the quarter, we achieved our earnings growth target and delivered record EPS. Starbucks strong Q1 performance reaffirms our confidence in the aggressive FY13 growth targets we announced in early November. The quality and diversity of growth drivers in the business, combined with our continued focus on operational excellence, gives us confidence in sustainable, strong profitable growth.”