Starbucks Reports Record Q2 Fiscal 2018 Results

April 30, 2018

SEATTLE-- Starbucks Corporation reported financial results for its 13-week fiscal second quarter ended April 1, 2018. GAAP results in fiscal 2018 and fiscal 2017 include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures in full release for more information. 

Q2 Fiscal 2018 Highlights 

  • Global comparable store sales increased 2%, driven by a 3% increase in average ticket 
  • Americas and U.S. comp store sales increased 2% 
  • CAP comp store sales increased 3% 
  • China comp store sales increased 4% 
  • Consolidated net revenues of $6.0 billion, up 14% over the prior year including: 
  • 3% net benefit from consolidation of the recently acquired East China business and other streamline-driven activities, including Teavana mall store closures, the Tazo divestiture, and the conversion of certain international retail operations from company-owned to licensed models 
  • 2% benefit from foreign currency translation 
  • GAAP operating margin, inclusive of restructuring and impairment charges, declined to 12.8%, down 490 basis points compared to the prior year 
  • Non-GAAP operating margin of 16.2% declined 170 basis points compared to the prior year 
  • GAAP Earnings Per Share of $0.47, up 4% over the prior year 
  • Non-GAAP EPS of $0.53, up 18% over the prior year 
  • The Starbucks RewardsTM loyalty program added 1.6 million active members in the U.S., up 12% over the prior year 
  • Starbucks RewardsTM member spend increased to 39% of U.S. company-operated sales; Mobile Order and Pay represented 12% of U.S. company-operated transactions 
  • The company opened 468 net new Starbucks stores in Q2 and now operates 28,209 stores across 76 markets. During the quarter, the company also closed 298 Teavana®stores 
  • The company returned $2.0 billion to shareholders in the quarter through a combination of dividends and share repurchases 

“Starbucks Q2 of fiscal 2018 represented another quarter of record financial results, highlighted by accelerating momentum across our Americas business - particularly in the U.S., continued strong performance in China and our strongest comp growth in Japan in five quarters,” said Kevin Johnson, president and ceo. “At the same time we made measurable progress against each of the strategic initiatives that position Starbucks to continue delivering best-in-class operating and financial results long into the future.” 

“We have a clear set of actions underway to improve profitability through a combination of comp and beverage growth and savings across COGS, waste and labor as we move through the back half of the year,” said Scott Maw, cfo. “We are continuing to invest in our business - strategically and with a ‘long game’ mentality - while at the same time taking decisive near-term action to maximize our brand portfolio and ensure that we continue to deliver outsized returns to our shareholders in the quarters and years ahead.” 

Full release 


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